Christo Wiese backs rights issue as Texton Property Fund seeks UK growth

Posted On Thursday, 10 September 2015 09:25 Published by
Rate this item
(0 votes)

Retail magnate Christo Wiese continues to back Texton Property Fund by underwriting a significant portion of a rights issue.

Angelique de Rauville

Retail magnate Christo Wiese has continued to back Texton Property Fund by underwriting a significant portion of a rights issue announced yesterday.

His relationship with Texton began when he entered a joint venture with it to buy assets in the UK last year.

Mr Wiese is the largest shareholder in Tradehold, a property investment and financial services firm. He entered into a joint venture with Moorgarth Holdings, a subsidiary of Tradehold, to acquire Broad Street Mall in Reading.

Texton CEO Angelique de Rauville said yesterday that the deal had been successful and she had plans to buy more assets in major UK cities. Texton would raise close to R1bn through its rights issue, which would be completed early next month.

The funds would be used for acquisitions in the UK and SA.

Texton has plans to dramatically increase its offshore property exposure as it diversifies.

The group wants to raise its overseas weighting to 50% of its property portfolio from 25%.

Texton was formed in 2006 and listed in August 2011 as Vunani Property Investment Fund. Its name was changed to Texton following corporate action and an investment consortium led by Ms de Rauville.

“I want to buy more assets in the UK. I like cities like Reading and Norwich there, which offer well-priced opportunities that we can execute on quickly. This does not mean we won’t invest in some good South African properties too,” she said yesterday.

The rights offer will consist of the issue of 100-million new Texton shares in the ratio of 36.22312 for every 100 Texton shares held on the rights offer record date of September 18.

The new shares will be placed at an issue price of R9.86 per rights offer share, a slight premium to yesterday’s closing price of R9.70.

Certain shareholders have elected to subscribe to 36-million rights offers shares, representing 36.2% of the aggregate. Luna Group has undertaken to subscribe to up to 41.9-million of the shares not taken up by Texton shareholders.

source Business Day

Last modified on Thursday, 10 September 2015 10:26

Most Popular

Balwin's Munyaka registers record R850 million in opening weekend sales, selling 555 apartments

Mar 09, 2020
Steve_Brookes_Balwin_Properties
JSE listed Balwin Properties, a developer that cares about environmentally responsible…

Balwin Properties and ABSA launch South Africa’s first green home loan

Mar 13, 2020
Apartment 71933
JSE-listed Balwin Properties Limited (Balwin Properties or the Company) and Absa Group…

Growthpoint reports a steady first half with its growth strategies paying dividends

Mar 11, 2020
Growthpoint Properties Group CEO Norbert Sassee
Growthpoint Properties (JSE: GRT) reported distributable income growth of 2.2% to R3.2bn,…

Spear REIT launches innovative self-isolation campaign for returning travellers in Cape Town, South Africa to combat COVID-19:

Mar 18, 2020
Double Tree Op
JSE listed Spear REIT Limited, the owner of the Double Tree by Hilton Cape Town, is the…

Financial Fitness – Is this the right time to buy property?

Mar 20, 2020
Governor Lesetja Kganyago SARB1
With the South African Reserve Bank’s announcement of interest rates cut of 100 basis…

Please publish modules in offcanvas position.