WestProp extends subscription period
…As Treasury grants prescribe asset status on shares
BUSINESS REPORTER
Real estate developer WestProp has extended the subscription period for its preference shares after Treasury granted prescribed asset status, which gives room for insurance and pension firms to invest in the asset class to meet their statutory obligation.
West Prop is raising US$30m to speed up the completion of pipeline projects. It offered 1m ordinary shares at US$10 each and 5.4m preference shares at US$5 per share.
In a statement yesterday, the real estate developer said it received notification on April 24 that its Preference Shares worth US$30m had been conferred with Prescribed Asset status by the Minister of Finance and Economic Development in terms of the Insurance Act and the Pensions and Provident Funds Act.
“In order to afford a reasonable opportunity for investment in the company’s preference shares to institutional and other investors for whom prescribed asset status is an investment consideration, the directors of WestProp hereby extend the subscription period (which had closed on 21 April 2023) to such period as the available Preference Shares are fully subscribed,” it said.
WestProp said its preference and ordinary shares would be listed on the Victoria Falls Stock Exchange on April 29 as per schedule despite the extension of the subscription period, subject to compliance with the minimum shareholder spread requirements of the dollar-denominated bourse.
“The securities that will be subscribed during the aforesaid extended subscription window shall accordingly be listed in additional subsequent parcels on the VFEX,” it said.
WestProp’s pipeline projects include Millennium Heights in which it would sink US$2.125m on common area amenities (both sport and recreational) and bulk infrastructure services to include access roads, storm water drainage as well as bulk water and sewer reticulation and related services and the completion of Block 4, which is currently under construction. It also requires US$500,000 for amenities at Pokugara Residential Estate.
WestProp wants to develop Millennium Office Park, which will see the construction of six office blocks with a total gross leasable area of circa 33,000sqm at a cost of US$2m.
The real estate developer requires US$10m to commence construction on the first phase of Mall of Zimbabwe, anticipated to be the largest single retail shopping mall investment in Zimbabwe.
WestProp says it requires US$4m for infrastructure services for the second and third phases at Pomona City for the Phase 2 & 3 infrastructure services.
It has aside a budget of US$10m for Warren Hills Golf Estate. The Estate will encompass a 5-star luxury hotel and conference centre, retail shops, office park, club house facilities for the enhanced/ upgraded golf course and an exclusive residential estate of modern contemporary style villas, luxury apartments, townhouses and an attached retirement section with health and medical facilities. The project will start with the residential estate.
It has set aside a budget of US$1m for the development of a 60-ha eco-park village to incorporate weirs and active and passive recreational amenities including sitting areas, running and cycling tracks.
WestProp said it was going public to “provide a quality investment alternative to domestic and international property investors, anchored on a balanced portfolio with access to developmental profits as well as property management fees and rental incomes.
