Stor-Age Property Reit has managed to raise R1.275bn in a heavily oversubscribed book-build as it looks to fund its first offshore acquisition. Investors have been looking at more specialised property stocks for value — such as Stor-Age, which is the only JSE-listed group that invests solely in self-storage assets. This is while the earnings quality of companies exposed to the retail, office and industrial sectors has deteriorated quite quickly on the back of a weak economy, according to Sesfikile Capital portfolio manager and director Kundayi Munzara. Stor-Age raised R1.275bn of equity at a price of R11.50 per share. "These funds would allow us to conclude the circa R1.3bn acquisition of Storage King on October 31, while maintaining a conservatively well-placed balance sheet post the effective date of the transaction," said CEO Gavin Lucas.

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now