Fortress Income Fund raises R1.3bn to fund development plans

Posted On Monday, 22 February 2016 15:58 Published by
Rate this item
(0 votes)

Fortress Income Fund's development plans are given a boost as it raises R1.3bn in an oversubscribed accelerated bookbuild.

Mark_Walter_Stevens_MD_CEO

Fortress Income Fund’s development plans were given a boost when it raised R1.3bn in an oversubscribed accelerated bookbuild.

CEO Mark Stevens said yesterday that the funds raised would be used to pay for vacant land and certain projects. Mr Stevens said that the oversubscription suggested investors were keen to support more equity raises this year.

The company’s shareholder base has expanded since it took over Capital Property Fund last year. It also joined the MSCI Emerging Markets index, which prompted global index trackers to buy into it.

The bookbuild was raised by R300m from R1bn to R1.3bn following the oversubscription.

Fortress Fund, the best-performing property fund of last year, last week announced that it had grown its B-unit dividend 101.2% in the six months to December, in the period which saw it complete the takeover of Capital Property Fund.

The deal enhanced Fortress’s portfolio, which was dominated by shopping centres that serve the country’s commuter market.

Capital owns more industrial property than any other listed fund in SA and Mr Stevens said he was trying to grow its “already impressive logistics assets”. Its logistics pipeline is worth about R4.5bn, according to Mr Stevens.

In terms of new acquisitions, Mr Stevens said he had found various opportunities in retail.

“You are only as good as your latest results, and we keep this in mind as we progress as a fund. I believe that there are many opportunities in SA right now, in the retail space where we invest,” Mr Stevens said.

source: BD

Last modified on Monday, 22 February 2016 16:24

Most Popular

Fairvest to become fourth property company to list on A2X

Oct 30, 2019
DARREN WILDER
Fairvest Property Holdings, a real estate investment trust with a market cap of R2…

Pam Golding Properties Annual Residential Property Report 2019

Nov 08, 2019
SA Reserve Bank
Signs that the residential property market is beginning to stabilise.

Largest student housing development in SA

Oct 29, 2019
STAG African John Schooling
The largest student housing project ever undertaken by a South African public university…

RMB Real Estate Investment Banking: a large-scale partner in a mega mall redevelopment project

Oct 28, 2019
Dylan Stevenson RMB
BROWNFIELD developments have unique challenges. Most shopping centres are built from…

Katlehong's first enclosed Mall opens

Oct 30, 2019
MOLMAN GROUP
Moolman Group, in partnership with Twin City Developments and Vuno Developments, are…

Please publish modules in offcanvas position.