The agency simultaneously affirmed Redefine's national long-term rating at 'BBB(zaf)' with stable outlook, national short-term rating at 'F3(zaf)' and its subordinated debentures at 'BB(zaf)'.

"The rating reflects Fitch's view that over the long term, Redefine is expected to benefit from its increased stake of 45.2% in Hyprop Investments Limited.

Fitch believes that Redefine's increased stake in Hyprop will improve its spread of retail assets, with a more diversified portfolio of strong shopping centres in key economic regions across South Africa," the ratings group said.

The agency said it also anticipated that Redefine would benefit from Hyprop's significantly lower vacancy rates, stronger lease expiry and tenant profile, and the general quality of Hyprop's property assets.

"However, Fitch considers it unlikely that Redefine will increase its shareholding in Hyprop beyond 50% over the short-term.

"This is because investors are highly unlikely to take up the mandatory offer made by Redefine to the remaining Hyprop unitholders as the traded price of the Hyprop combined units is currently higher than the mandatory offer of R50 per unit," it said.

Fitch added that the financial profile of Redefine remained consistent with its ratings, including funds from operations interest coverage in excess of 2.5x and its loan-to-value remaining below 40%.

"Whilst Fitch remains comfortable with Redefine's current operating profile, it notes that any further significant debt-funded acquisitions could negatively affect the company's credit metrics, most notably leverage and, ultimately, place pressure on its ratings," it said.

Redefine is a property loan stock company, which has investments in a portfolio of retail, office and industrial properties.

Most of the properties are situated in and around the main commercial hubs of South Africa with a high concentration of properties in the greater Johannesburg area, the Western Cape and Durban.

Redefine International (RIN) announced on Friday that it was offering qualifying investors, including Redefine Properties existing linked unitholders, to subscribe for up to 180 million Redefine International linked units at an issue price payable in rand.

RIN will list on the JSE on September 7 with 348.5 million units.

Redefine International is a property investment and development group which has investments in commercial and retail investment properties in the UK, Switzerland, Germany and the Channel Islands.