SA Corporate Real Estate Fund (SAC) said it will fund the R1 billion Buffcol portfolio of 40 primarily industrial properties from the Collins Property Group through an earnings-enhancing issue of 244,180,780 units at a clean price of 395 cents a unit.

SA Corporate CEO, Craig Ewin, said in a statement that while it was originally planned to partly fund the transaction by debt, the increased cost of debt funding had led to the decision to issue new equity.

"By fully funding the acquisition through new equity, existing unitholders will benefit as distributions will be enhanced, albeit marginally, and risk of interest rate movement ahead of the property transfers has been avoided," said Ewin.

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Publisher: I-Net Bridge
Source: I-Net Bridge