Resilient surprised by strong demand
Unprecedented interest sees bookbuild for R750m extended to R2.5bn
Resilient Reit CEO Des de Beer was overwhelmed by the unprecedented interest in an accelerated bookbuild, which was intended to raise R750m but was extended to R2.5bn.
Resilient raised the capital to lower its gearing.
It will also use part of the funds for a potential direct property deal in Europe.
Macquarie Equities said Resilient Reit’s see-through gearing was about 32%, which De Beer said was conservative.
"We like to keep our gearing at conservative levels compared with other listed property funds," he said.
" I was shocked at how much interest there was in the raise. We could have actually raised more," he said.
Resilient’s share price climbed 17% in the first seven months of 2017, well ahead of the FTSE-JSE SA listed property index, which gained 6.07%.
About R2.5bn was raised at a price of R126 per share.
Resilient’s strategy of owning a diverse range of shopping centres in SA and interests in several offshore groups has been paying off, with the company continuing to outdo its peers.
Resilient grew its dividend 16.1% in the 2017 financial year to June, making it one of few listed property stocks to declare double-digit distribution growth this results season.
The company has gained from attractive currency rates previously locked onto its offshore dividend income from its holdings in Greenbay Properties, Hammerson, New Europe Property Investments and Rockcastle Global Real Estate.
Resilient also owns 60.94% of the Resilient Africa initiative for the development of shopping malls in Nigeria in partnership with Shoprite Checkers.
Greenbay also recently raised R4.5bn though an accelerated bookbuild.
There is speculation that Resilient and Greenbay could co-invest in a large property asset in Europe.