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Enter Redefine International PLC website
Enter Redefine Properties International Limited website
In line with Redefine’s strategy to house its offshore portfolio in a vehicle for South African investors to take advantage of the recovering offshore property market, Redefine investigated the feasibility of an inward listing of RI plc on the JSE.
The inward listing was rejected by the South African Reserve Bank (SARB) but Redefine was the first listed property company to receive approval from SARB for foreign direct investment in offshore property.
The company received permission to hold its interest in RI plc directly through a South African subsidiary, RI Limited, which listed on the JSE on 7 September 2010.
RI Limited is authorised to remit additional capital from South Africa to fund the future growth of the offshore company.
RI Limited’s sole asset is its shareholding in RI plc. Each linked unit in RI Limited effectively equates to one share in RI plc.
The listing of RI Limited provides South African residents and institutions an exciting rand-based opportunity to invest in an international portfolio of properties. South African participants will own an investment in good quality offshore properties at an attractive yield and a growing income stream with an added benefit that investing offshore may provide an effective rand hedge.
Distributions will be received by RI Limited in pounds and converted to rands at the ruling exchange rate on the date that they are received. In turn, the rand denominated income will be distributed to RI Limited unitholders.
In the year to 31 August 2010, the JSE approved the listing of 336 574 640 RI Limited linked units in the Real Estate – Real Estate Holdings and Development sector of the JSE, which included a capital raising by way of a private placement of 168 069 337 linked units and Redefine’s existing interest of 168 505 303 linked units.
The private placement, which closed on 30 August 2010, afforded potential investors the opportunity to participate in the equity of RI Limited. £84 million was raised at an issue price of R5,69 per linked unit, 153% above the minimum subscription amount of £55 million set by the company.
Redefine subscribed for 24 million linked units in RI Limited in terms of the private placement, increasing its holding in RI Limited to 192,5 million linked units, or 57,2% of the RI plc units in issue. Part of the capital raised in the private placement was used by RI Limited to subscribe for additional shares in RI plc and to repay a loan from Redefine. The capital raised by RI plc was used to acquire a portfolio of London based hotels and to expand the group’s business in the UK, Europe and Australia.
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