JSE-listed real estate investment trust Fortress Real Estate Investments has placed 55.67-million B ordinary shares at R24.25 a share as a bookbuild placement following strong institutional demand.
The shares represent about 4.5% of the company’s total B ordinary shares in issue and will raise gross proceeds of about R1.35-billion, it says.
“The proceeds will advance the rollout of our South African and Central and Eastern European logistics development pipeline, as well as assist us to close out existing retail opportunities that align with Fortress’s investment criteria,” says Fortress CEO Steven Brown.
“Until these development, expansion, enhancement and acquisition opportunities are finalised, the placement proceeds will be deployed in a manner designed to avoid material cash drag and to maintain a healthy loan-to-value position,” he notes.
The logistics sector continues to benefit from structural tailwinds including the rapid growth of e-commerce, the reconfiguration of regional supply chains and increasing demand for modern, well-located and safe warehousing across South Africa, as well as Central and Eastern Europe.
