STOR-AGE Property REIT Limited successfully raised R500 million in its first debt auction, the company said in a statement yesterday.
The three-year and five-year notes placed at a clearing margin of 132 basis points and 154 basis points over the three-month Johannesburg interbank average rate respectively, below price guidance.
JSE-listed REIT Stor-Age, South Africa’s largest self storage property fund, raised R500m across two notes on offer through the company’s inaugural public bond auction which listed on the JSE yesterday.
The auction attracted bids in excess of R1.3 billion from 12 investors in an auction conducted by Nedbank.
Stor-Age CFO Stephen Lucas said the auction provided them with a good foundation to become a regular issuer in the debt capital markets, over the medium term, and it was also a strong vote of confidence from investors in the Stor-Age brand, operating model and strategy.
The placing allowed Stor-Age to extend its debt maturities, diversify its funding sources and enlarge its unsecured funding pool.
Stor-Age would use the funds raised to settle existing debt, lower the cost of funding and to fund potential acquisitions and new developments in South Africa.
In March 2024, GCR Ratings assigned an A+(za) national scale long-term rating and an A1(za) national scale short-term rating to Stor-Age, with a stable outlook.
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