Oryx Properties has raised N$312.7 million from its recent rights issue, representing an 82.4% subscription rate.
The property firm’s initial goal was to raise N$379.6 million, which would have been a 60% top-up to be used towards the N$632.7 million purchase price of the Dunes Mall in Walvis Bay.
“Given the current market conditions, a mixture of institutional and retail investors in the unitholder base, and the ambitious size of the capital raise, Oryx management is excited by the positive response with an 82.4% take-up of the allocated Rights Issue Units. This clearly demonstrates the commitment and buy-in from shareholders to the company’s strategy,” the Namibian Stock Exchange-listed company said.
Oryx will utilize a portion of a new RMB facility amounting to N$500 million to cover the mall purchase price while also repaying an existing N$100-million loan facility with the investment bank and a N$75-million Nedbank loan, both of which mature in August 2023.
The acquisition of Dunes Mall comes after the Namibian Competition Commission (NaCC) granted unconditional approval for Oryx Properties to proceed with the purchase.
The acquisition aims to achieve geographic diversification and reduce reliance on its largest asset, Maerua Mall.
Dunes Mall is one of the biggest malls in Namibia.
Oryx is a listed property investment fund with a N$3 billion property portfolio and exposure to different real estate industry segments and as part of its Strategy 2025, the company aims to grow the property portfolio to N$4.5 billion geographically within Namibia.
