Local private and institutional investors will soon have the opportunity to invest their rands in an international portfolio when Redefine Properties list its subsidiary, Redefine International, on the JSE on 7 September.

Redefine International’s only asset will be its shareholding in Redefine International plc, which is listed on the alternative investment market (AIM) on the London bourse. Mike Watters, CE of Redefine International, says every linked unit in Redefine International will represent one share in the plc company.

He says the JSE approved the listing of up to 348,505,303 Redefine International linked units, which also include a capital acquisition through a private placing of up to 180 million additional linked units.

“The listing is preceded by the private placing in order to give prospective investors the opportunity to share in the equity of Redefine International.”

Prospective investors, including existing Redefine unit holders, can sign up to 180 million Redefine International linked units at a disbursing price in rand, which is the equivalent of £50 per linked unit.

He expects the reaction to the offer, which opens on Monday 23 August and closes on 30 August, to be positive, based on the feedback at recent offers. The listing and private placing are subject to a minimum amount of the Rand equivalent of £55m to be received.

The additional capital being collected will be used to finance the growth of Redefine International plc.

The company, which mainly invests in retail and commercial property in the UK, elsewhere in Europe and Australia, owns a portfolio of 91 properties in the UK, Germany and Switzerland with a value of some £294m. After the listing, the portfolio will include an additional six properties in the UK valued at about £194m.

The flagship asset in the UK is the 42,000sqm Grand Arcade centre in Wigan in greater Manchester. This centre is 94% fully let and attracts some 7,8m visitors per year.

The firm also has a stake of 19,9% in the Cromwell company in Australia and 21,73% in Wichford in the UK.

Watters says an investment in Redefine International will provide prospective investors with an advanced return of more than 7,5%.

Disbursements will be received in pound and converted to rand at the reigning exchange rate on the date on which disbursements are done. – Elma Kloppers, Sake24

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