Rebosis linked unitholders show overwhelming support for office portfolio acquisition

22 May 2013 – Rebosis Property Fund today reported overwhelming support from its linked unit holders with 99.9% of votes cast approving the Fund’s proposed acquisition of and capital raising for the Nthwese property portfolio.

“We are humbled by this overwhelming support.” commented Rebosis CEO Sisa Ngebulana. “The linked unitholders’ approval provides us with the option to raise up to R1.080 billion in fresh capital from the market.

“It is unlikely that we’ll raise the entire amount through equity though” Ngebulana cautioned.

“We are able to attract debt at preferential rates and are currently in the process of optimising the funding structure. We should be able to come to market on the equity side in the next couple of weeks.”

The Nthwese portfolio is dominated by national and provincial government with an element of blue chip corporate tenants. This high quality portfolio, which includes the iconic IBM building at 124 Main Street in Johannesburg, is underpinned by long-term leases expiring in 2019 and 2020, providing linked unitholders with predictable revenue streams with low forecast risk.

The portfolio consists of five properties with a combined gross lettable area (GLA) of 67 952 m2 and virtually no vacancies located in established nodes within the Johannesburg and Pretoria CBDs offering direct access to public transport routes and infrastructure.

“The acquisition is yield enhancing and supports our strategy to acquire large, preferable single-tenanted buildings in nodes attractive to government and big business.” Ngebulana concluded.