Real estate group raises R4.5bn

Hybrid real estate group Greenbay Properties, which invests in other property stocks and directly in distressed European assets, raised R4.5bn in a heavily oversubscribed bookbuild.

Hybrid real estate group Greenbay Properties, which invests in other property stocks and directly in distressed European assets, raised R4.5bn in a heavily oversubscribed bookbuild.

Many local fund managers are backing groups such as Greenbay to get returns abroad.

The company had initially aimed to raise R2bn, later doubling this to R4bn and then extending it by a further R500m. This was in response to demand on the Stock Exchange of Mauritius and the JSE.

The capital was raised through the placing of nearly 2.2-billion new shares at R1.97 per share on the JSE and about 8.7-million new shares at €0.126 per share in Mauritius.

Subject to approval by the JSE and the Mauritius Stock Exchange, the listing and trading of the new Greenbay shares on the two bourses is expected to begin at the opening of trade on August 22 2017.

Greenbay reserved the right to extend this settlement period if necessary to obtain the required approvals from the JSE and the Mauritius exchange.

CEO Stephen Delport said he could not comment on the bookbuild yet as Greenbay was in a closed period.

The company will release its financial results on Friday.

In May, Delport did say that Greenbay had managed to grow its portfolio opportunistically despite the volatile state of the world economy.

Greenbay increased its net asset value per share from 4.80p at the end of March 2016, to 7.35p at the end of March 2017, an increase of 53.1%, its most recent results said.

“The increase in net asset value since September 2016 is 8.7%,” said Delport.

The group’s loan-to-value ratio was 6.5% at the end of March. With its ever-increasing direct property exposure, the board’s policy is not to exceed a loan-to-value ratio of 45%.

Greenbay’s most recently acquired assets were 50% of the holding company of two retail centres in Portugal, Forum Coimbra and Forum Viseu, for close to €110m.

Garreth Elston of Golden Section Capital said Portugal’s economy had offered improving investment fundamentals.