Gaia Fibonacci Fibre REIT 1 (Gaia Fibonacci Fibre or the REIT), South Africa’s specialist fibre network real estate investment trust, is looking to list its B preference shares on the Cape Town Stock Exchange (CTSE, formerly 4AX) early next quarter.
Subsequently, funding applications are currently open, says the company.
This follows Gaia Fibonacci Fibre raising the majority of the authorised A preference shares effective 31 January at R81 million.
The capital raise is in addition to the R34 million raised at the initial listing on CTSE (on 10 December 2021), closing the A preference share book on a total of R115.7 million.
Says Denzil Kennon, chief operating officer of Gaia Fund Managers: “The funding was utilised to acquire 54 fibre network sites with a concentration in Gauteng, but with some exposure to KwaZulu-Natal and the Western Cape.
“The feedback from the market has been great. We are excited to build on this foundation and continue to provide investors with direct access to these specialist fibre infrastructure investments. We will use this momentum to raise further funds to match a strong deal pipeline with more than R100 million currently committed to the B preference shares.”
According to the company, the REIT provides a tax-efficient structure through which investors can realise inflation-tracking returns through their exposure to exclusive fibre networks that provide internet access to a growing base of end users.
Kennon continues: “The REIT, as a ring-fenced entity, provides institutional and retail investors with a first-of-its-kind opportunity to access fibre infrastructure investments in South Africa. It provide investors with access to rental income from immovable property as if they are direct owners in the immovable property.
“Fibre network infrastructure investments accessed through tax-efficient REITs is well known internationally, but the application to the South African market is novel. The REIT is an attractive product for long-term investors. Non-retail investors who are looking to gain exposure to this tax-efficient specialist infrastructure opportunity or have further questions on the opportunities should contact us.”
The REIT is Gaia’s second infrastructure-related listing on the CTSE. In October 2020, the fund manager listed preference shares for Gaia Renewables 1.
The latter houses investments in renewable energy infrastructure, such as the Tsitsikamma Community Wind Farm near Humansdorp in the Eastern Cape.
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