Arrowhead says funds to purchase residential properties - CNBC Africa

Arrowhead says funds to purchase residential properties

Southern Africa

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Arrowhead’s investment in residential will now reportedly be 1.6 billion rand. PHOTO:

It proposed an equity raise, which was implemented through an accelerated book build process, of approximately 500 million rand to fund acquisitions.

The acquisitions, in Johannesburg, Pretoria, Van der Bijl Park and Witbank, will reportedly bring Arrowhead’s investment in residential to 1.6 billion rand.

(WATCH VIDEO: Arrowhead increases commercial property portfolio)

“Arrowhead has raised 600 million rand by placing just under 32 million A and B units at a combined price of 18.80 rand, a discount of less than two per cent on the ruling price before the capital raising,” it said.


“As a result of strong demand the original target of 500 million rand was increased to 600 million rand and the placing was significantly over-subscribed at the increased level.”

[DATA AWB:Arrowhead] also stated that all the properties it acquired are at yields in excess of 10 per cent, which is revenue enhancing for the company.

“The acquisition of additional residential property is in line with Arrowhead’s strategy to increase its exposure to residential property – which Arrowhead is considering holding through a focused residential fund that will be separately listed by Arrowhead,” it added.