The challenge

Growthpoint Properties Limited is the largest South African primary listed Real Estate Investment Trust (REIT) with over R166-bn in property assets across South Africa, Australia, Eastern Europe and the UK. Due to inter alia the impact of COVID-19 on the business, the company proactively decided to raise approximately R4-bn of new equity capital to reduce gearing, strengthen their balance sheet and improve financial and operational flexibility. Growthpoint’s targeted equity raise amount of approximately R4-bn would have represented the largest capital raise by a JSE-listed property company since 2017..

The RMB solution

RMB jointly advised and implemented Growthpoint’s R4.3-bn primary equity capital raise by way of an Accelerated Bookbuild Offering (ABO). The ABO was launched during a period of market volatility, taking advantage of favourable market conditions post US elections and positive news regarding a possible COVID-19 vaccine. The ABO attracted strong local and international investor interest and demand that resulted in a book of demand that was multiple times over-subscribed and priced at R12 per share. This represented a 6.3% premium to the clean pre-launch 30-business day volume weighted average price.

The equity raise was the largest primary ABO on the JSE for 2020 and the third largest JSE Equity Capital Markets (ECM) issuance this year. The equity raise is also the largest ever primary ABO undertaken by an SA REIT.

Proven client results

Growthpoint will use the proceeds to reduce debt and strengthen its balance sheet. This will enable them to retain operating flexibility and undertake certain development and investment activities.

Client Growthpoint Properties Limited
Deal value R4.3-bn
Sector Real Estate
Capabilities Advisory

Equity Capital Markets

Real Estate Investment Banking
RMB's role Joint bookrunner
Country South Africa

RMB has an extensive deal footprint in over 35 countries in Africa.


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