Loyiso Sibali

Property Reporter

PROPERTY development group Quantum Property Group (QPG) is to list next Monday on the JSE’s AltX.

The group said the rationale was to enable it to access more and larger property opportunities and to access equity investments as well as borrowed funds. Other reasons were to create share liquidity, facilitate an incentive scheme to attract and retain top management skills, and create value for shareholders.

QPG raised R32,3m in issuing 13333334 shares at R1,50 and 6858371 shares at R1,80 a share to select investors during the prelisting period.

CEO Gary Itzikowitz said the market turmoil presented opportunities for property developers to make money with value returning to the property market. “We intend to grow the company quite actively, however, with caution and quality.”

Itzikowitz said the group, which is active in all property sectors, was redeveloping a prime site (15 on Orange), near Parliament in Cape Town, into a mixed-use development including a five-star hotel with a spa and wellness centre, conference facilities, a retail centre, penthouse apartments and a four storey parking garage.

The project should be completed next June, and had been independently valued at R988m on completion.

“While in the short term Cape Town is a leading host city for the … 2010 Soccer World Cup, which bodes well for tourism, long-term prospects are sustainably stronger with the city continually being rated as one of the top 10 cities globally to visit,” said Itzikowitz.

QPG executive directors have track records in property development and portfolio management, having already developed more than R4bn in projects.

Source: Business Day