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

Kzn's time to shine

Jun 02, 2018
ideal holiday  kzn
South Africa’s eastern province of KwaZulu-Natal, with its diverse culture, year-long…

Attacq Limited converts to a Reit

Jun 02, 2018
Attacq singles
Attacq Limited, (“Attacq”), the JSE listed property company, announced its conversion to…

New BEE code creates opportunities for construction companies

May 23, 2018
Kwakho Mpepho
The gazetting of an amended Code of Good Practice on Broad-Based Black Economic…

Vukile delivers 7.7% full-year distribution growth with strong performance from its SA retail portfolio and its major expansion into Spain

Jun 02, 2018
Laurence Rapp
Vukile Property Fund today reported 7.7% growth in dividends to 168.82 cents per share…

Arrowhead Properties reports strong interim results

May 23, 2018
Mark Kaplan Arrowhead
South African focussed JSE listed REIT Arrowhead announced strong operating performance…

Please publish modules in offcanvas position.