JSE Listed Sizafika Property Investments Limited, which has been restructured from the shell of knitwear company Adonis, announced that it will raise capital of approximately 6.9 million rand through the implementation of a rights offer to linked unit holders.
 
The approximately 3.2 million rand share capital of the Adonis listed shell has been restructured and converted into a property loan stock company with linked units. Together with the capital raised in the rights issue, this will provide seed capital of approximately 10 million rand for Sizafika, to be used to fund the costs of property acquisitions.
 
"The new entity will then acquire an initial property portfolio of between 500 and 600 million rand at an attractive yield of not less than 10,5%," explained Sizafika CEO Bryan Smith.
 
Once this is achieved, Sizafika will be moved from the JSE Limited Consumer Goods: Personal Goods sub sector to the Financial, Real Estate sub sector. This is expected to take place before the end of September 2006.
 
I-Net Bridge
Publisher: I-Net Bridge
Source: I-Net Bridge