November 13 09:30
JSE-listed real estate investment trust (Reit), Equites Property Fund, raised R558m through the public auction of 3-year and 5-year listed senior unsecured floating rate notes in the South African debt capital market, it announced.
It raised R188m in a 3-year note maturing November 2027, and R370m in a 5-year note maturing 14 November 2029. Both notes cleared at the bottom of the price guidance that was distributed to the market prior to the auction. EQT022, the 3-year note, cleared at 110 basis points over 3-month JIBAR, and EQT023, the 5-year note, cleared at 125 basis points over 3-month JIBAR. These are the lowest levels at which Equites has raised listed debt funding since listing in 2014.
The auction was supported by financial institutions. In total, bids of R1.7bn were received, resulting in an over-subscription on issuance volume of three times.
In achieving the tightest spreads for listed debt in the South African real estate sector, Equites has been able to benefit from a momentum swing towards property, particularly the logistics sector, given the SA and UK portfolio of the company with near-zero vacancies and a weighted average lease expiry over 14 years.
“The outstanding results of this debt auction clearly illustrate the deep support Equites receives from South African financial institutions due to the strength of Equites’ balance sheet underpinned by the R28 billion of high-grade logistics facilities which Equites develops for and leases to world-class tenants,” Warren Douglas, Treasurer and Head of Risk Management at Equites said.
alistair@propertyflash.co.za
