As a result of strong demand the original target of R500 million was increased to R600 million and the placing was significantly over-subscribed at the increased level.

The funds will used to purchase residential properties acquired in Johannesburg, Pretoria, Van der Bijl Park and Witbank bringing Arrowhead's investment in residential to R1,6 billion. All the properties have been acquired at yields in excess of 10% which is revenue enhancing for Arrowhead.

The acquisition of additional residential property is in line with Arrowhead's strategy to increase its exposure to residential property – which Arrowhead is considering holding through a focused residential fund that will be separately listed by Arrowhead.