“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.