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.
Townhouse for sale in Langenhovenpark R 790 000
Apartment / Flat for sale in Montana R 1 395 000
House for sale in Mooikloof R 4 200 000
Apartment / Flat for sale in Upper Main Street R 1 500 000
Townhouse for sale in Pumula R 920 000
House for sale in Bathurst R 1 250 000
Apartment / Flat for sale in Annlin R 695 000
Apartment / Flat for sale in Plettenberg Bay R 2 200 000
House for sale in Bronkhorstspruit R 400 000
House for sale in Geelhoutpark R 1 280 000
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