Atlantic Leaf Properties seeks liquidity on main board

Posted On Tuesday, 08 November 2016 22:01 Published by
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Atlantic Leaf Properties moves to the JSE's main board.

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Atlantic Leaf Properties, the Mauritius-based property investment company that owns mid-sized industrial and office properties in the UK, has moved to the JSE’s main board.

The company is seeking a larger, wider profile of shareholders and to become a more liquid stock.

“After just more than two years in operation, we believe that Atlantic Leaf has grown sufficiently as a company to migrate to the JSE’s main board and we expect that this move will lead to improved trading liquidity. Our strategy to establish a portfolio of quality properties with solid leases is on track,” said CEO PaulLeaf-Wright.

The company grew its investment properties to £283m in its period of operation by adding 47 quality assets to its portfolio. The portfolio consisted of assets in key regional nodes in the UK, each of which had longterm, single-tenant leases with blue chip occupiers.

Atlantic Leaf managed to perform well despite the vote in May for the UK to leave the EU.

“Our investment case remains compelling as postBrexit uncertainty and supportive fundamentals create an attractive opportunity for South African investors to invest inthe UK property market,” said Leaf-Wright.

“We foresee a cautious recovery as limited supply, a low interest rate environment and attractive yields continue to fuel the UK investment market.

“Despite some political and economic concerns, we see occupier and investment demand as well as income and capital growth continue to show value in the industrial and logistics property sector,” he said.

The company said: “To fund its future growth plans, Atlantic Leaf Properties ran a successful accelerated bookbuild, which closed on October 27. Strong demand from investors ensured that targeted equity of £20m [equivalent to approximately R341m] was raised through a placing of 18,788,395 new Atlantic Leaf shares through its South African and Mauritian registers at R18.14 and £1.07, respectively.”

The proceeds of the capital raise, together with the recent sale of a property in Wombourne near Wolverhampton and transactionrelated debt provided the company with capacity to acquire total assets of more than £50m. Of this, £29.5m would go towards funding the acquisition of a warehouse asset in the village of Preston Brook near Runcorn.

It is tenanted by DHL Supply Chain, a global logistics group.

This was expected to provide a return on asset in excess of 7% at the rental review in December 2019.

source: Business Day

Last modified on Tuesday, 08 November 2016 22:16

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