South African businessman Des de Beer’s trust secures approval for $447-million bond listing

Resilient, the real estate investment trust (REIT) led by South African tycoon Des de Beer, has secured approval to list a new senior unsecured bond on the Johannesburg Stock Exchange (JSE), aiming to raise approximately R8.29 billion ($447.1 million).

Listing approval signals Resilient’s proactive capital strategy

The successful pricing of the three-year bond, slated to mature on May 7, 2027, was facilitated by Nedbank’s Corporate and Investment Banking division, acting as the dealer for the issuance. Rand Merchant Bank, a division of FirstRand, assumed the role of debt sponsor, further bolstering confidence in Resilient’s financial endeavors.

With an interest commencement date slated for May 7, 2024, investors stand to gain from a competitive return tied to prevailing market rates, augmented by an additional spread of 130 basis points. The structured interest payment schedule, with payments scheduled for Aug. 7, Nov. 7, Feb. 7, and May 7 annually until the bond’s maturity in 2027, further enhances the attractiveness of this investment opportunity.

Resilient REIT: A pillar of real estate innovation

Founded in 2002 by Des de Beer, Resilient REIT has become a powerhouse in the real estate sector, boasting a market capitalization of R17.3 billion ($904.68 million) at the time of drafting this report. Resilient manages a vast portfolio of 27 shopping centers across various regions, totaling a combined gross lettable area of 1.2 million square meters.

The decision to list the new unsecured bond underscores Resilient’s strategic emphasis on optimizing its capital structure and fostering sustainable growth amidst evolving market dynamics. With Des de Beer at the helm, Resilient continues to exemplify resilience and adaptability in navigating the ever-changing contours of the global real estate market.

Resilient REIT’s revenue growth

Under de Beer’s leadership, Resilient REIT’s contractual rental revenue and recoveries surged to R3.53 billion ($191.1 million) in 2023, from R3.29 billion ($178.02 million) a year earlier. Revenue from direct property operations rose to R3.58 billion ($193.57 million) compared to R3.5 billion ($189.64 million) in 2022.

The company’s assets also expanded by 7.41 percent to R35.7 billion ($1.93 billion) as of Dec. 31, 2023, from R33.24 billion ($1.80 billion) at the end of 2022, highlighting its commitment to sustained growth and innovation in the real estate market.