Delta Property list on the JSE

Posted On Tuesday, 06 November 2012 16:26 Published by eProp@News
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The black-managed and substantially black-owned property loan stock company Delta Property Fund made its debut on the JSE on Friday, with 233,834 shares, worth nearly R2m, trading.The share reached a high of R8.65, but closed just 1c higher than its R8.31 low.

Sandile Nomvete Delta

Delta Property plans to use the capital raised through its initial public offering to acquire R1bn worth of property assets in the next year. It aims to reach R7bn in the next five years.

Speaking after the listing on Friday, CEO Sandile Nomvete said the company needed to grow its liquidity and size and the only way to do that was through an aggressive growth path.

"The response from the institutional market was humbling. Our growth potential is underscored by the fact that the placement was significantly oversubscribed. We deliberately included private client brokers in the placement to stimulate (the) tradability and liquidity of the counter," Mr Nomvete said.

Delta’s portfolio boasts 20 established, mainly AAA-, A-or B-grade high-quality office buildings across South Africa, in nodes attractive to government departments.

The portfolio has been independently valued at R2.1bn and comprises a total gross lettable area of 203,261m2, consisting of 92% office space and 8% retail.

The fund is externally managed by a 100% black-owned asset manager, which qualifies Delta for long-term government leases in terms of the Department of Public Works’ rules. Delta received pre-commitments from Coronation Asset Management, Stanlib Asset Management, the Public Investment Corporation, Momentum Asset Management and Grindrod Asset Management.

"Proceeds of the capital raising will be used to reduce the fund’s overall gearing levels and fund a portion of the portfolio," Mr Nomvete said.

 

Last modified on Friday, 18 April 2014 09:56

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