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Growthpoint announces R2.5bn capital raising

21st May 2013

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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JSE-listed Growthpoint said on Tuesday that it would embark on a R2.5-billion capital raising to fund its pipeline of potential acquisitions and estimated R1.2-billion in development opportunities.

The property group, which would issue new linked units, would open its equity raising to both South African and international investors through an accelerated book build process.

“The capital raise will be used as part of the broader funding strategy for the pipeline of high-quality, distribution-enhancing investments and for other opportunities within the South African and Australian markets,” the group said in a statement.

Growthpoint, which aimed to list under the new real estate investment trust, or Reit, legislation from its year-end in June, agreed to a 90-day lock-up, excluding the distribution reinvestment plan, option schemes and equity issued directly to vendors, as part of the funding consideration for acquisitions.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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