Premium Properties announced on Friday that it intended to raise R400 million by way of a partially underwritten renounceable rights offer of 26 666 667 Premium-linked units at an issue price of 1 500 cents per linked unit in the ratio of 20.5 rights for every 100 linked units held on the record date for the rights offer.

The offer price represents a 3.3% discount to the 30-day volume- weighted average price of linked units on the JSE at the close of business on January 13 2011.

The capital raised would create a platform from which to pursue further growth opportunities, the property fund said.

The additional capital will be utilised to repay debt in the short term, and to fund acquisitions and several re-developments of properties.

RMB Securities and a consortium made up of the Wapnick family and Octodec Investments has agreed to co-underwrite the rights offer up to a maximum value of R138 million, representing 34.5% of the rights offer.

Premium-linked unitholders holding about 48.4% of Premium's linked units in issue have provided written commitments to follow all of their rights in respect of the offer.

The offer is still subject to the Registrar of Companies granting approval.

Linked unitholders are advised that the JSE has granted their approval for the rights offer and all documents ancillary thereto, according to Premium.