Ken Reynolds, Gauteng Regional Executive for Nedbank Finance
Synthesis Funding, Nedbank’s R15bn asset-backed commercial paper programme, has refinanced a R200 million three-year loan to Arnold Properties (Pty) Ltd, a 100% owned subsidiary of Emira Property Fund.
The loan allows Emira to continue to deploy their cash resources to further strengthen the quality of its property portfolio, through acquisitions and disposals as well as refurbishments, upgrades and redevelopment of specific properties.
Synthesis, which funds itself directly in the debt capital markets, was able to present a competitive pricing proposition against traditional bank finance. The loan will be secured by a portfolio of properties that have been ring-fenced to provide the security pool.
“Nedbank’s success was due to the synergy between the specialist teams involved and the value that they each brought to the party. Our Property Finance team has a strong relationship with the Fund’s management and the Securitisation team was able to add significant value because of the extensive experience they have in structuring deals of this nature. We are proud to have been in a position to provide this agile and efficient solution to Emira and feel that it further demonstrates Nedbank’s commitment to the listed property sector in South Africa,” says Ken Reynolds, Gauteng regional executive for Nedbank Property Finance.
Emira Property Fund has been listed in the Real Estate Investment Trusts (REIT) sector on the JSE since November 2003, and is in the process of converting to a Corporate REIT with effect from 1 July 2015. Its property portfolio is spread across the office, retail and industrial sectors. As at 31 December 2014, the Fund had a total of 148 properties with a total asset value of R13.5 billion and a market capitalisation of R8,8 billion.