The total cost of funding across the Pangbourne group of companies, including margin for the first tranche of the new programme, was below 8,8%, said Rob Wesselo, director of strategy at Pangbourne.

Wesselo said that with the prime lending rates at 12,5%, the group of companies' cost of funding was 4% below prime.

"This is the first time in the South African market we have taken separate listed property companies in what is known as a multiborrower securitisation," Wesselo said.

The companies raised R1,562bn in the first tranche of notes launched through the multi-borrower programme on Friday on the Bond Exchange of SA.

"In other words we have raised R1,562bn from the capital markets but this time the funding that is raised is being utilised by Pangbourne, Monyetla, Siyathenga and iFour," said Wesselo. "The net result is even more efficient funding."

Macquarie First South property analyst Leon Allison said the programme provided cheaper funding than conventional debt.

"They are pooling the debt of Pangbourne and the underlying funds and generating savings through the larger scale created," said Allison.

An original commercial mortgage-backed securitisation programme was facilitated by Pangbourne for iFour Properties in 2004. But the cash used from the initial securitisation programme was used only by iFour.