| Tue 22 Sep 2009, 10:43 | | VKE - Vukile Property Fund Limited - Vukile raises R250 million through |
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VKE
VKE
VKE - Vukile Property Fund Limited - Vukile raises R250 million through
securitisation programme
Vukile Property Fund Limited
(Incorporated in the Republic of South Africa)
(Registration number 2002/027194/06)
ISIN: ZAE000056370
JSE Share code: VKE
NSX Share code: VKN
VUKILE RAISES R250 MILLION THROUGH SECURITISATION PROGRAMME
Johannesburg, 22 September 2009 - Listed property loan stock company Vukile
has raised R250 million through Vukile Investment Property Securitisation
(VIPS), the commercial mortgage backed securitisation programme established by
the company in October 2005 to reduce the cost of funding its commercial
property investment.
The funds were raised through the placement of two tranches of notes in the
South African debt capital markets to four investors in July and September
this year. The notes were rated Aa2/AAA.za by Moody`s and were placed at a
spread of Jibar (Johannesburg Interbank Agreed Rate) plus 200 bps for an
all-in cost of funding, including the note margin, of 10.42%. The interest
rate on this new debt has been fixed by way of an interest rate swap. The notes
have a tenor of 2.7 years and mature on 7 May 2012. This capital-raising
represents the first "tap" by VIPS since its establishment in October 2005 and
increases the total outstanding amount under the programme to R1.02 billion.
Chief executive Gerhard van Zyl said that, due to the appreciation of property
values within the company`s portfolio and the escalation in rental income, no
additional properties needed to be added to the portfolio to effect the
transaction. "We are particularly pleased with this result, which has allowed
us to use VIPS and our existing property portfolio more effectively," he said.
Following the transaction, the company`s loan to value and interest cover ratio
remained well within the covenant levels of 65% and 1.55x respectively.
VIPS was the second commercial mortgage backed securitisation programme to be
implemented in South Africa and was realised with the assistance of ABSA.
These programmes have been used worldwide since the late Nineties as an
alternative to conventional bank loans and are a favoured instrument for
reducing the cost of funding commercial property portfolios. Mortgage backed
securitisation programmes currently constitute some 15% of European
securitisation issuance and has been used to fund major projects such as
London`s Canary Wharf.
Vukile has a portfolio of 74 properties with a gross lettable area of
920 232mSquared. The portfolio has a gross asset value in excess of R4.53
billion.
For further information contact Gerhard van Zyl, CEO Vukile Property Fund
Limited, on 011 288 1002
Issued by du Plessis Associates on behalf of Vukile Property Fund Limited.
dPA contact Helen McKane Tel : +27 11 728 4701, Fax: +27 11 728 2547, Mobile:
082 330 2034 or e-mail: vukile@dpapr.com
www.vukileprops.co.za
Sponsor
Barnard Jacobs Mellet Corporate Finance (Pty) Limited
Date: 22/09/2009 10:43:12 Produced by the JSE SENS Department.
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