Sirius Real Estate Ltd said on Thursday it will raise £150 million through share placing to acquire more assets.
The London- and Johannesburg-listed property investor first announced on Wednesday it planned a capital raise to fund its acquisition pipeline.
On Thursday, it said it will issue 159.6 million new shares to raise £150 million, representing about 12% of the issued share capital.
The offer price of 94 pence represents a discount of around 3.5% to the closing share price of 97.45 pence on Wednesday. The offer represents a discount of about 2.1% to the volume weighted average price on the JSE over the thirty trading days prior to Wednesday of 96.05p.
Sirius said it was ‘pleased’ with the ‘strong’ support it has received from new and existing investors.
BlackRock subscribed for 17.7 million offer shares, representing an aggregate consideration of approximately £16.7 million.
The latest round of capital raise comes shortly after secured £147 million in November for acquisitions. Between December 2014 and March 2024, Sirius acquired 58 assets at a total investment amount of £879.1 million.
‘The success of this capital raise is a strong endorsement of our ambitious growth strategy and operational track record, having recently announced our tenth year of both annualised rental growth above 5% and dividend increases,’ Sirius Chief Executive Officer Andrew Coombs said.
Shares in Sirius rose 1.8% to R 22.77 on Thursday morning in Johannesburg. In London, they gained 0.6% to 98.00 pence.
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