Growthpoint raises R4.3bn in bookbuild

CAPE TOWN – Growthpoint Properties raised R4.3 billion yesterday via accelerated bookbuild, which will be used to strengthen its balance sheet and to pay off debt from the December 2019 acquisition of a stake in UK regional shopping centre group Capital & Counties.

Growthpoint’s share price fell 14 percent to R11.82 by midday yesterday, more or less the level it was prior to the capital raise.

It is South Africa’s largest JSE-listed Reit and is invested in real estate and communities across Africa, Australia, UK and Eastern Europe.

The share later closed at R11.49 on the JSE.

Listed commercial property groups have suffered heavily through the Covid-19 pandemic after lockdowns the world over affected the ability of tenants to pay rents, substantially reduced footfalls to retail centres and accelerated an existing trend among consumers to do their shopping online.