Construction World February 2019

PROPERTY

DEBT REFINANCING PROGRAMME Emira Property Fund has to date successfully refinanced over R1,2-billion of its debt maturing in the current financial year ending 30 June 2019, and is attracting keen demand and favourable pricing in the process.

I n September, the JSE-listed REIT refinanced maturing secured listed DMTN notes through the issue of new three- and five-year notes. It aimed to raise R330-million and received bids for R813-million. The significant oversubscription

good investor relationships and ensures investors are well versed in exactly what they are allocating funds to. This is evident with our new seven-year note, which shows investors are comfortable to take a long-term view on Emira.” On 1 July 2018 Emira had R2,5-billion of maturing debt to refinance during its financial year to 30 June 2019. With its latest DMTN auction and other initiatives completed, it has already refinanced a significant portion of this. “We’ve delivered on all our debt refinancing requirements to this point and are already approaching halfway in what we need to achieve this financial year. We are seeing good pricing coming from the refinancing coupled with strong demand, which signals that Emira remains a relevant and attractive investment,” says Booyens. Emira is a medium-cap diversified REIT that is invested in a quality, balanced portfolio of office, retail, industrial and residential properties. Its directly held assets comprise 104 properties valued at R12,5-billion and indirectly 22 shopping centres valued at R1,04- billion through its exposure to Enyuka Property Fund. It also has a 34,9% holding in JSE AltX-listed Transcend Residential Property Fund. Emira is internationally diversified through its investment in ASX-listed Growthpoint Properties Australia valued at R956-million, and its equity investments in five grocery-anchored convenience centres with a combined value of USD45-million through its USA subsidiary. 

Greg Booyens, FD of Emira Property Fund.

enabled Emira to choose its split between note terms. It assigned R130-million to three-year notes at 145 bps above three-month Jibar, achieving extremely attractive pricing at the bottom end of its guidance. Emira put R200-million in five-year notes at 160 bps above three-month Jibar, which was again comfortably within its guidance. “We are extremely happy with the results, especially because we were able to improve the pricing of the notes,” reports Greg Booyens, Chief Financial Officer of Emira, of the REIT’s first auction of new secured DMTN notes in three years. Further, a new seven-year secured note for R100-million was issued on 13 December after requests were received from investors for a long-term note. The new seven-year note has been issued at attractive pricing of 180 bps over three-month Jibar, and the funds are being used to refinance other maturing debt. Booyens adds that Emira keeps investors in its DMTN programme well informed and up-to-date in their understanding of Emira with biannual roadshows. “Regular transparent communication builds DENVER WAREHOUSE UPGRADED Emira Property Fund is set to complete the total refurbishment of its 9 800 m 2 warehouse facility located in the popular industrial hub of Denver, Johannesburg, by March 2019. T he leading JSE-listed REIT is investing R8,2-million in the major revamp project, which will bring the industrial property on this prime site on the corner of Mimetes Road and Kruger Street to the forefront of modern business accommodation. “By refurbishing our Denver warehouse Emira is furthering our strategy to improve the quality of our assets. This property is part of our core portfolio because it has great fundamentals in place; an excellent location in an established industrial area, easy highway access, security, and ample electrical power. Now, with this upgrade, we are refreshing the building to support the latest warehousing and business operations,” says Ulana van Biljon, Chief Operating Officer of Emira Property Fund. When the refurbishment project is completed the facility will offer conveniently positioned modern warehousing of nearly 9 800 m 2 . The new building will comprise some 1 000 m 2 of contemporary offices with an eye-catching new entrance. A new courtyard will bridge the offices and the 8 800 m 2 warehouse. Both offices and warehouse will be fitted with energy-efficient lighting to lower occupancy costs at the facility. The entire building will boast a striking new façade including

unusual linear feature lighting, making it a landmark for its area. The upgraded warehouse property will have its own new gatehouse positioned at a reconfigured entrance point with electric gates, supporting both security and ease of access. New parking canopies are being installed to cover 86 of the 120-plus parking bays. New fencing will surround its entire perimeter. It will also benefit from a water-wise landscaping makeover. “Our upgraded Denver warehouse offers a modern and affordable position in a convenient location,” notes van Biljon. Emira is a medium-cap diversified REIT that is invested in a quality, balanced portfolio of office, retail, industrial and residential properties. Its directly held assets comprise 104 properties valued at R12,5-billion and indirectly 22 shopping centres valued at R1,04-billion through its exposure to Enyuka Property Fund. It also has a 34,9% holding in JSE AltX-listed Transcend Residential Property Fund. Emira is internationally diversified through its investment in ASX-listed Growthpoint Properties Australia (GOZ) valued at R956-million, and its equity investments in five grocery- anchored convenience centres with a combined value of USD45- million through its USA subsidiary. 

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CONSTRUCTION WORLD FEBRUARY 2019