Western Cape-focused real estate investment trust (Reit) Spear has raised R1 billion through an accelerated bookbuild on the JSE, with the capital raise multiple times oversubscribed.
This highlights the strong institutional demand for the stock, says the group, especially with its new shares being issued at R12.70 a piece, representing a 0.1% premium to the company’s 30-day volume-weighted average price to Wednesday 22 April.
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Spear issued a total of 78.7 million new shares as part of the capital raise. The new shares are expected to list on the JSE on 30 April, subject to regulatory approval, with PSG Capital acting as sole book-runner and adviser.
Group CEO Quintin Rossi comments: “Spear has been built on a foundation of disciplined capital allocation, deep sector knowledge and an actively managed, regionally concentrated portfolio.”
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The proceeds will be directed toward acquisitions in convenience retail, commercial and industrial property within the Western Cape, while also funding brownfield developments and asset management initiatives, including the expansion of Spear’s solar PV portfolio.
Rossi says the group has a “clear and actionable” pipeline, with a focus on transactions that enhance earnings and net asset value.
He adds that the company will continue pursuing strategy-aligned acquisition opportunities, while unlocking value through redevelopment, densification and active asset management across its core portfolio.
Spear’s successful capital raise follows its recent inclusion in the FTSE/JSE All Property Index and FTSE/JSE SA Reit Index, signalling a broader investor base. Other smaller SA Reit counters to be included in these indices include Dipula Properties and Octodec.
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Spear is set to release its full-year results on 18 May, where more details on its capital deployment are expected to be detailed.
The group’s share price fell around 3% on Thursday, following its Sens update on its latest capital raise.
* Phenyo Selinda is a Moneyweb Intern
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