CHAMWE KAIRA
Oryx Properties says both existing and new investors have a new opportunity to invest in one of Namibia’s leading property companies.
Oryx is embarking on a growth strategy for the next two years and is in the process of acquiring the Dunes Mall in Walvis Bay.
As part of the funding strategy, Oryx has embarked on a renounceable rights issue. This will see current investors in Oryx being allocated letters of allocation, allowing them to purchase additional units in Oryx. Further, this means that new investors will be able to purchase rights to invest in Oryx on the Namibian Stock Exchange.
Oryx stated that the rationale for the rights issue is to acquire the Dunes Mall by raising 60% of the capital for the acquisition through equity and 40% through new debt. The company, which was founded 20 years ago has a property investment fund with a N$3 billion property portfolio and exposure to different real estate industry segments.
Oryx said following a thorough review of the market and strategic opportunities over the next three to five years, it will embark on an ambitious growth strategy, namely Strategy 2025, where the aim is to grow the property portfolio to N$4.5 billion within Namibia by 2025 and also to reposition the entire portfolio and reduce the overall concentration risk of Maerua Mall within the existing portfolio.
The company anticipates that a well participated capital raise would provide Oryx with sufficient capital to fund the growth requirements for the 2023 and 2024 financial years and therefore reduce the requirement for another capital raise in 2024.
Oryx has agreed to purchase the Dunes Mall at a price of N$620 million at a first-year yield of 9.5% vs.
the comparative corresponding Oryx retail portfolio that is currently trading at circa 8.50%.
The company’s plan is to issue 32,698,877 Linked Units, thereby raising 60% or circa N$379.6 million of the acquisition price. The remaining portion will be funded from debt where gearing is expected to initially deteriorate slightly until the benefit of the property valuation upside is achieved.
The Dunes Mall was built in two phases in 2017 and 2019 respectively at a total cost of N$600 million. The asset consists of 32,438 square meters and is anchored by Checkers, Pick ‘n Pay and Game and has traded well since opening, despite the region having been one of the worst impacted during the COVID pandemic in 2020 and 2021, respectively, largely due to its robust tenant mix of value and premium brands and its location within the Erongo Region and the town of Walvis Bay.
