Accelerate Property Fund, the JSE listed REIT with significant retail exposure in the dynamic Fourways node in Johannesburg, received significant support for its Domestic Medium Term Note issuance yesterday. Accelerate is currently involved in extending the Fourways Mall into a super regional shopping centre with the precinct expected to be close to 200 000m² of GLA upon completion.
The company was looking to refinance R264 million of existing capital markets debt but due to strong demand and favourable pricing, R525 million of 3 and 5 year notes were issued. The issuance was well oversubscribed with total demand exceeding R760 million.
“Accelerate has been a regular issuer in the debt capital markets since listing in 2013. We are pleased with this issuance as it was well over subscribed with the entire issuance amount priced within the guidance communicated to the market. It is encouraging to see longer dated notes being issued and the issuance being supported by new investors. All proceeds of the issuance will be applied to repay existing debt” commented Andrew Costa, Chief Operating Officer of Accelerate Property Fund.