The proceeds would be used as part of Growthpoint’s broader funding strategy for its pipeline of “high-quality‚ distribution-enhancing investments and for other opportunities within the South African and Australian markets”‚ the company said.

The equity raise would be offered to South African and offshore institutional investors through an accelerated book build process.

“Growthpoint currently has a significant pipeline of identified acquisition opportunities‚ of which a number are well advanced‚ and in excess of R1.2bn of development opportunities within its existing property portfolio. “For clarity‚ this acquisition pipeline excludes the Fountainhead portfolio.”

Growthpoint is the largest-listed property company in SA‚ owning and managing a portfolio valued at R54.8bn. The company intends to convert to a real estate investment trust (Reit) at the earliest opportunity after the end of its financial year.

Given that the Growthpoint linked units would be issued under Growthpoint’s general authority‚ the accelerated book build was only open to public shareholders as defined in the JSE listings requirements‚ Growthpoint said.

The book build‚ jointly run by Deutsche Bank and Investec Bank‚ “opens now and may close any time thereafter”‚ Growthpoint said