Property Flash


Logistics property fund, Equites, which develops and owns a portfolio of logistics properties in key locations in South Africa and the United Kingdom, raised R1.25bn in the South African debt capital market on Thursday in a public auction of 1-year, 3-year, and 5-year senior unsecured floating rate notes. Equites elected to issue R385m in the 1-year note at a clearing rate of 3-month JIBAR plus 108 basis points, R447m in the 3-year note at a clearing spread of 3-month JIBAR plus 146 basis points, and R418m in the 5-year note at a clearing spread of 3-month JIBAR plus 159 basis points.

“The excellent result of this, our second public debt auction, is a further indication of the strong support that Equites receives from capital markets,” said Andrea Taverna-Turisan, CEO of Equites.

He said Equites was looking to raise R1bn, with the option to upsize to R1.25bn, off its JSE-listed DMTN Programme, and received R2.34bn of bids from 21 different bidders across the three notes in the auction conducted by Standard Bank. The 3-year and 5-year notes cleared in the mid of price guidance and the 1-year note cleared below the price guidance of 110-120 basis points. The strong pricing of Equites’ debt is reflective of positive investor sentiment and a recent credit rating outlook upgrade to positive on its AA-(ZA) rating from GCR Ratings on August 30 2022.

“Prior to the auction, Equites embarked on a deal roadshow to engage with investors, the success of which is evidenced by the continued diversification and increase in the debt capital market investor base with 29 financial institutions invested in Equites’ listed debt. Our regular engagement with debt and equity investors is key to the growth of our business, and it is through these deep relationships with the investor community that Equites continues to grow from strength to strength,” treasurer for Equites Warren Douglas said.

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