Redefine Properties launches American Depository Receipt programme

Posted On Saturday, 07 September 2013 07:56 Published by eProp Commercial Property News
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Redefine Properties has launched its American depository receipt (ADR) programme‚ making it the first property company in South Africa to launch an ADR programme on the over-the-counter market in the US.

Andrew KonigBank of New York Mellon is the sponsor for its ADR programme.
 
Each depository receipt in the ADR programme represents 10 ordinary shares in Redefine.
 
The company said that over the past five years international ownership had grown to just over 15% of the total shareholder base with US investors representing just under half of these international investors which‚ by country‚ is the second-largest investor base.
 
By establishing the ADR programme‚ Redefine hopes to make investing more accessible to more international investors‚ particularly to US investors.
 
Redefine also believes the ADR programme will provide the company with a better understanding of the international investor market.
 
Redefine was granted real estate investment trust (Reit) status with effect from September 1 2013.
 
The introduction of the Reit structure provided investors‚ both domestic and international‚ with a common understanding of the nature of the vehicle in which they were investing‚ and removed some of the ambiguity that existed with property loan stock companies‚ it said.
 
”The Reit structure is an international benchmark for property ownership in a listed environment and is widely recognised as the worldwide industry standard‚” Redefine financial director Andrew Konig said.
 
“The ADR programme is therefore an ideal platform to reach the anticipated growth in international interest and encourage international investment in Redefine.
 
“Redefine offers US investors sustained and growing income at an attractive income yield with a good prospect of capital appreciation‚ which is underpinned by diversified quality property assets managed by proven operators‚” he said.
Last modified on Thursday, 17 April 2014 11:50

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