Redefine International has successfully placed 168,1 million linked units (private placement units), amounting to £84m, under the private placement and the demand is extremely robust.

A maximum of 180 million private placement units at a price of 50-pence per unit were available under the private placement. The company received applications for 153% of the minimum subscription amount of £55m.

The private placement precedes the listing of Redefine International in the “Real Estate - Real Estate Holdings and Development” sector of the Main Board of the JSE on 7 September 2010.

Redefine International CEO Mike Watters says the private placement was well received by South African investors hoping to benefit from this innovative rand-based opportunity to invest in an international portfolio of property investments.

The capital raised in terms of the private placement will be used by Redefine International to subscribe for additional shares in Redefine International plc and to repay a loan from Redefine Properties Limited which was used to fund a further investment in Cromwell in Australia.

Watters says Redefine International plc will use the balance of the capital raised to expand the group’s business of investing in commercial, retail and hotels primarily in the United Kingdom (UK) and Europe and to increase its holdings in selected property related listed securities in the UK and Australia. Redefine International plc will look to grow its portfolio through appropriate acquisitions and/or joint venture initiatives as and when opportunities arise.

Redefine International will list a total of 336,7 million linked units at an issue price of R5,69 per linked unit, with an initial market capitalisation of R1,9bn. The linked unit price has been established on the basis of an effective 50-pence issue price per private placement unit which was translated to South African Rand from pounds sterling at an exchange rate of £1/R11.3718, being a rate as published by the South African Reserve Bank on 30 August 2010.

Post the private placement, Redefine Properties Limited will hold 57,9% of the Redefine International linked units in issue. As applications in excess of the minimum amount were received, Redefine Properties Limited will not be required to subscribe for any private placement units in terms of its underwrite commitments.

Successful applicants will be advised of their allocation of private placement units by Friday, 3 September 2010. It is a JSE requirement that there be a minimum of 300 public unitholders and following the private placement, Redefine International Limited will have over 1,000 public unitholders.

Watters says the level of interest has been exceptional in light of world markets not having fully recovered from the global financial crisis.

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