Picture: THINKSTOCK
Picture: THINKSTOCK

UK-FOCUSED Atlantic Leaf Properties raised £49.5m (R1.14bn) in capital at the beginning of February. This brought the total funds raised since listing in April 2014 to £135m (R3.1bn).

Various South African property funds are buying assets in western European countries such as Germany and the UK and eastern European countries such as Serbia and Poland; high-quality commercial property is relatively cheaper than the equivalent assets in South Africa. Funding costs in Europe are also cheaper.

"2016 has seen a volatile start to global capital markets and the company’s ability to successfully complete this round of funding, is a big vote of confidence from, in particular, South African property investors in the management team and Atlantic Leaf’s strategy," said CEO Paul Leaf-Wright.

Atlantic Leaf’s primary listing is on the Stock Exchange of Mauritius. It has a secondary listing on the Johannesburg Stock Exchange’s (JSE’s) AltX.

Mr Leaf-Wright said he wanted to list the company on the JSE main board in the near future.

The new capital raised would immediately be deployed into six UK-based property assets, including three industrial properties and three commercial office properties, for a gross consideration of £107.8m, including costs.

"New debt, representing 55% to 60% loan to value, has been negotiated on attractive terms. These properties have low credit risk, single-tenant occupation and long unexpired lease terms, consistent with the overall investment philosophy," said Mr Leaf-Wright.