11 Mar 2013
Emira Property Fund successfully settled and immediately re-issued R400 million of three month unsecured commercial paper (CP), for the second time.
The paper rolled for a further three months and now needs to be settled in May 2013.
The oversubscribed issue last week received bids from six potential investors to the value of R650 million for the R400 million on offer.
It was placed with four investors and Rand Merchant Bank arranged the roll over.
The appetite for Emira CP saw the interest margin remain stable at 21 basis points above the three month Jibar rate, which represents a decrease from the first issue level of 25 basis points achieved in August 2012.
James Templeton, chief executive of Emira, says the fund’s continued sourcing of a portion of its funding via the money markets and debt capital markets has several benefits, including lowering the average cost of borrowings and diversifying the source of its borrowings.
“It is Emira’s policy to diversify its sources of funding between commercial banks, the debt capital markets and money markets.
“This minimises interest costs and reduces the risk to investors,” says Templeton.
Johannesburg Stock Exchange listed Emira Property Fund is a real estate investment trust with a diversified portfolio of office, retail and industrial properties.
Its assets comprise 146 properties valued at R9.1 billion and listed investments of R500 million and it has a market capitalisation of R7.5 billion.
Vacant Land / Plot for sale in Vierlanden, Durbanville, Western Cape R 1 160 000
House for sale in Ferncliffe, Pietermaritzburg, KwaZulu Natal R 2 350 000
Apartment / Flat for sale in Stellenbosch, Stellenbosch, Western Cape R 1 970 000
House for sale in Brackenhurst, Alberton, Gauteng R 1 550 000
House for sale in Sandbaai, Hermanus, Western Cape R 1 150 000
House for sale in Ratanda, Heidelberg, Gauteng R 490 000
Townhouse for sale in Glen Marais, Kempton Park, Gauteng R 695 000
Apartment / Flat for sale in Greenstone Hill, Greenstone Hill, Gauteng R 1 350 000
Commercial Property for sale in Noordhoek, Bloemfontein, Free State R 3 200 000
House for sale in Welgemoed, Bellville, Western Cape R 2 900 000
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