RAISING CAPITAL
RDI selling older assets in Europe
CEO Mike Watters warns the group is struggling to raise fresh capital from SA investors
RDI, the UK-and Germany-focused property company, is selling older assets in Europe to raise capital due to a lack of interest from SA investors. RDI CEO Mike Watters said on Thursday the group was struggling to raise fresh capital from SA investors, who had lost faith in listed property in general following investigations into the Resilient group of companies. The sell-off of property stocks was triggered early in 2018 by allegations of share price manipulation levelled against the Resilient group. The four companies — Resilient, Fortress, Greenbay Properties and Nepi Rockcastle — constituted about 40% of the sector’s market capitalisation at the start of 2018, so shares were widely held by fund managers. The allegations are being probed by financial regulators. Watters said the real estate investment trust would sell between £50m and £100m worth of assets over the next three months and buy assets that could support its dividend growth in 2019. "We are recycling our capital into be...
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