News: South Africa-based Safari Investments, which has a portfolio retail properties valued at about ZAR1.2bn and which comprises a total gross lettable area of about 124,925 square metres, is seeking to raise between ZAR315mn (US$29.59mn) and ZAR400mn (US$ 37.57mn) through the private placement of its shares on the Johannesburg Stock Exchange. The listing is scheduled to take place on April 7 through the private placement of 42mn to 52.2mn new ordinary shares, with selected eligible investors at an indicative price of ZAR7.52 (US$0.71) each. The net proceeds from the offering will be used to settle debts and free up existing facilities of around ZAR60mn (US$5.64mn), which will in turn support the company's project pipeline.
BMI View : We believe that the real estate sector in South Africa will remain stable throughout 2014 because of a lack of change in the supply demand dynamic and enough new projects in the pipeline to satisfy strong demand. Net yields will remain consistent in all sectors, and we will see only a couple changes in rental rates. The sector does face some headwinds in the form of faltering macroeconomic conditions, a volatile currency and inflation concerns, but the country is still one of the brightest commercial real estate prospects in the region.