August 25 2025 18:00
SOUTH AFRICA
JSE-listed landlord Fairvest raised around R976m on Monday in an oversubscribed bookbuild, far higher than the R400m it had initially said it would raise.
The R976m would allow Fairvest to issue 180 872 707 new shares, which is the maximum number of new shares that Fairvest is authorised to issue. The shares are Fairvest B-shares and they were raised at 553c per share. The funds will be used for acquisitions and investments according to Fairvest’s CEO Darren Wilder. He said that these investments needed to be strategically aligned and accretive to Fairvest, and if pending, for debt reduction and other short-term treasury management alternatives.
Fairvest is a diversified landlord which was focussed on owning retail assets only until it acquired Arrowhead Properties. Fairvest has consistently delivered distribution growth for years while maintaining its position as a mid-cap property company on the JSE. Its market capitalisation is worth about R11bn across its A and B type shares. These different share types appeal to investors with varying debt appetites. Distribution per A share increases by the lesser of 5% or the most recent Consumer Price Index (CPI) each financial period. A share holders are paid their dividends first. B share holders are paid afterwards with the residual income but their dividends have no growth limit.
247@propertyflash.co.za
