Mara Delta successfully raises us$121 million in well-supported rights offer

Posted On Wednesday, 28 June 2017 12:13 Published by
Rate this item
(0 votes)

Mara Delta, the only listed Africa focused distribution group to offer international property investors direct access to immediate high growth opportunities on the continent outside of South Africa, today announced that it successfully raised US$ 121 215 554 in a well-supported rights offer.

 Bronwyn_Corbett_Delta

“We are very encouraged by the support received from our shareholders, especially as the issue price was at a premium to the current share price and given the quantum of the raise,” commented Chief Executive Bronwyn Corbett.

Corbett pointed out that the capital raise was one of the largest for an Africa focused real estate company. “We have introduced a number of new shareholders to Mara Delta and expect that the fresh capital will support liquidity in the share,” she said.

“The proceeds will allow us to settle current pipeline acquisitions, taking the number of income producing assets in our portfolio from 12 to 18,” Corbett continued.

“We will also take a stake in a development company. Since Mara Delta doesn’t take development risk, our investment will be through a shareholder loan, attracting an interest of 7.5% per annum. At the same time, Mara Delta has a right of first offer on any asset developed, allowing us to not only participate in the development upside, but have access to a high-quality and strategic portfolio as well,” explained Corbett.

In the three years since listing, Mara Delta has grown its asset portfolio from US$140 million to more than US$600 million post current pipeline transfers. Key to its success is the quality of its tenants and diversification across five countries on the continent. The Company has to date declared six distributions to shareholders, meeting forecast targets. 

“Going forward, our focus will be on driving liquidity and growing the net asset value of the Company,” Corbett concluded.

Following the issue of the Rights Offer Shares, the total issued share capital of the Company will increase to 208 514 621 ordinary shares, equating to a market capitalisation of approximately
R3.5 billion based on yesterday’s JSE closing price of R16.70.

Last modified on Friday, 30 June 2017 12:20

Most Popular

Portugal ramps up its appeal for South Africans seeking EU citizenship

Feb 07, 2018
Porto view across Douro River
Foreigners - including South Africans, wanting to acquire freedom of movement for…

Check your zoning rights before buying a residential property for business use

Feb 07, 2018
PJ Veldhuizen
How often do we see those adverts “perfect for home-office” or “ideal for business” on an…

SA REITs deliver another year of double-digit growth in 2017

Feb 07, 2018
Izak Petersen SA REIT
The FTSE/JSE South African Listed Property Index (SAPY) achieved total returns of 17.2%…

Rabie Property Group develops two exciting new office developments for Century City

Feb 07, 2018
Sable Park North Sable Road View
Two exciting commercial developments, including new offices for Discovery, are being…

Celebrations as new Thavhani Mall taxi rank opens

Feb 01, 2018
Brandon Nesengani
Shoppers can now get to Thavhani Mall in a flash thanks to the brand new taxi rank that…

Please publish modules in offcanvas position.