Cape Town, 11 November 2024: JSE-listed real estate investment trust (REIT), Equites Property Fund Limited, raised R558 million through the public auction of 3-year and 5-year listed senior unsecured floating rate notes in the South African debt capital market.
Equites raised R188 million in a 3-year note maturing November 2027, and R370 million in a 5-year note maturing November 2029. Both notes cleared at the bottom of the price guidance that was distributed to the market prior to the auction. EQT022, the 3-year note, cleared at 110 basis points over 3-month JIBAR, and EQT023, the 5-year note, cleared at 125 basis points over 3-month JIBAR. These are the lowest levels at which Equites has raised listed debt funding since inception in 2014.
The auction was well supported by leading financial institutions. In total, bids of R1.7 billion were received, resulting in an over-subscription on issuance volume of three times.
In achieving the tightest spreads for listed debt in the South African real estate sector, Equites has been able to benefit from a momentum swing towards property, particularly the logistics sector, given the high-quality SA and UK portfolio of the company with near-zero vacancies and a weighted average lease expiry of 14 years.
Warren Douglas, Treasurer and Head of Risk Management at Equites, commented:
“The outstanding results of this debt auction clearly illustrate the deep support Equites receives from South African financial institutions due to the strength of Equites’ balance sheet underpinned by the R28 billion of high-grade logistics facilities which Equites develops for and leases to world-class tenants”.
For more information on Equites, South Africa’s only listed, exclusively logistics-focused REIT on the JSE, visit www.equites.co.za.
For press information, contact:
Warren Douglas
Treasurer and Head of Risk Management at Equites
About Equites:
Equites Property Fund Limited Equites Property Fund Limited is a best-in-class prime logistics facilities developer and landowner, with a footprint in South Africa and the United Kingdom. Further, Equites is the only specialist REIT listed on the JSE. Equites listed on the JSE on 18 June 2014 with a portfolio value of R1 billion and has since grown to a portfolio value of R28.3 billion at 31 August 2024.
The REIT provides shareholder value through its high-calibre property portfolio, leased to AAA-grade tenants on long-dated, full repairing and maintaining leases. Combined with its disciplined financial management, this allows Equites to consistently deliver returns above inflation.
