Wiese backs rights issue as Texton seeks UK growth

ALISTAIR ANDERSON

RETAIL magnate Christo Wiese has continued to back Texton Property Fund by underwriting a significant portion of a rights issue announced yesterday.

His relationship with Texton began when he entered a joint venture with it to buy assets in the UK last year.

Mr Wiese is the largest shareholder in Tradehold, a property investment and financial services firm. He entered into a joint venture with Moorgarth Holdings, a subsidiary of Tradehold, to acquire Broad Street Mall in Reading.

Texton CEO Angelique de Rauville said yesterday that the deal had been successful and she had plans to buy more assets in major UK cities. Texton would raise close to R1bn through its rights issue, which would be completed early next month.

The funds would be used for acquisitions in the UK and SA.

Texton has plans to dramatically increase its offshore property exposure as it diversifies.

The group wants to raise its overseas weighting to 50% of its property portfolio from 25%.

Texton was formed in 2006 and listed in August 2011 as Vunani Property Investment Fund. Its name was changed to Texton following corporate action and an investment consortium led by Ms de Rauville.

“I want to buy more assets in the UK. I like cities like Reading and Norwich there, which offer well-priced opportunities that we can execute on quickly. This does not mean we won’t invest in some good South African properties too,” she said yesterday.

The rights offer will consist of the issue of 100-million new Texton shares in the ratio of 36.22312 for every 100 Texton shares held on the rights offer record date of September 18.

The new shares will be placed at an issue price of R9.86 per rights offer share, a slight premium to yesterday’s closing price of R9.70.

Certain shareholders have elected to subscribe to 36-million rights offers shares, representing 36.2% of the aggregate. Luna Group has undertaken to subscribe to up to 41.9-million of the shares not taken up by Texton shareholders.

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