Vukile Property Fund Successfully Completes R1 Billion Equity Raise

Vukile Property Fund Limited has announced the successful completion of its R1 billion equity raise, aimed at bolstering the company’s financial position and supporting its growth initiatives. The equity raise, which exceeded the initial target due to strong demand from investors, represents a significant milestone for the South African real estate investment trust (REIT).

Increased Size of Equity Raise

Originally planned to raise approximately 5% of the company’s current market capitalization, Vukile Property Fund decided to increase the size of the equity raise to R1 billion in response to robust investor interest. This decision reflects confidence in Vukile’s growth prospects and underscores investor appetite for quality investment opportunities in the South African real estate sector.

Details of the Equity Raise

The equity raise involved the issuance of new ordinary shares, referred to as “Bookbuild Shares,” at a price of R14.60 per share. This price represents a 0.75% discount to the pre-launch Vukile share price as of February 19, 2024, and a 4.85% discount to the 10-day VWAP (Volume-Weighted Average Price). The placement of approximately 68.5 million new ordinary shares accounts for approximately 6.6% of the company’s market capitalization.

Outlook

The successful completion of the equity raise underscores Vukile Property Fund’s resilience and strategic vision amidst a challenging economic environment. With the additional capital infusion, Vukile is well-positioned to pursue its growth objectives, enhance its property portfolio, and deliver value to shareholders.