Property Flash


March 14 2024

Real estate investment trust (Reit) Redefine Properties (JSE: RDF) raised R781m via a public bond auction, driven by demand from funder sand healthy liquidity in SA’s debt capital markets.

The company said its bond issue was oversubscribed by 1.77 times, receiving R1.4m in bids that resulted in an allocation of R781m across the five- and seven-year tenors at an auction held on March 11.
Five-year notes of R377m were placed at a margin of 149bps, and seven-year notes of R404m
were placed at a margin of 165bps, both over a three-month Johannesburg Interbank Average Rate

Ntobeko Nyawo, Redefine Properties CFO

The issue was launched through Redefine’s R30bn domestic medium-term note
programme, with the nominal R377m and R404m in unsecured floating rate notes set to
mature in 2029 and 2031 respectively.

“We are pleased that we were well supported by our funders in the debt capital market, with robust
demand received from institutional investors,” said Ntobeko Nyawo, Redefine CFO.

“The longer-dated seven-year bond in particular attracted substantial interest with just over R400m
issued at the lower end of the market pricing guidance. The bond issuance will extend Redefine’s debt
maturity profile and further diversifies our debt sources,” he said.

Nyawo said the proceeds from the bond would be used to repay upcoming bond maturities
during the 2024 financial year and as such, Redefine’s loan-to-value ratio would remain unchanged.
Redefine’s portfolio, valued at R96.8 bn (FY22: 88.9bn) is largely in SA through
directly held and managed retail, office, and industrial properties. It is complemented by a
presence in retail and logistics property assets in Poland.

By volume, Redefine’s shares are among the most actively traded in the SA Reit sector, making it a highly liquid, single-entry point for investors to gain exposure to the South African and Polish real estate markets.

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