Friday, 02 December 2016 03:52

Affordable housing trust lists on JSE

Written by
Rate this item
(0 votes)

Transcend Residential Property Fund will give investors exposure to a robust rental market following its listing, says CEO Rob Wesselo.

 Rob_Wesselo

Transcend Residential Property Fund would give investors exposure to a robust rental market following its listing, said CEO Rob Wesselo.

Very little residential property is listed in SA but there has been growing interest to change this as investors look to buy into specialised, lower-risk funds.

About 3% of listed property includes residential assets.

Transcend is a real estate investment trust (Reit) created by the private equity group, International Housing Solutions. It listed on the JSE AltX on Thursday with a market capitalisation of R489m and a rental portfolio of assets worth R1.165bn, at a yield of 9.25%.

It is the second totally focused residential Reit to join the JSE, after Indluplace Properties listed last year.

International Housing Solutions partners with financial institutions, real estate developers, private capital groups and the government to provide equity finance for various residential projects. It has created about 27,000 new units for sale and rent since it launched its first housing fund in SA in 2008.

The company has tended to fund three-storey walk-up developments that cater for buyers in the R400,000 to R800,000 bracket and tenants who can afford to pay a monthly rental of R4,000 to R8,000.

Transcend’s assets consist of 2,472 units throughout SA. As much as 76% of the portfolio is in Gauteng while 13% is in Mpumalanga and 11% is in the Western Cape.

As much as 80% of tenants in the Transcend portfolio rent for less than R7,000 a month, with 57% renting for between R3,000 and R7,000 and 23% paying less than R3,000.

About 85% of tenants are in good standing.

source: Business Day

Last modified on Saturday, 03 December 2016 04:05

Most Popular

The Property Practitioners Bill set to transform the entire property market

Sep 19, 2017
Storme Heath CAF2
Gazetted in March 2017 for comment, the long-awaited Property Practitioners Bill is…

Ballito Junction Regional Mall is crowned the best new shopping centre in South Africa

Sep 22, 2017
Aerial image of Ballito Junction
Ballito Junction Regional Mall has been named the best new shopping centre development in…

Jones Lang LaSalle South Africa 2017Q2 reports reveal useful trends on industrial, office and retail property sectors

Sep 21, 2017
Christian Ulbrich
Real estate consulting firm, JLL South Africa, has released its Q2 2017 research reports…

ADvTech Properties to expand asset base to R6bn by 2022

Sep 26, 2017
Vongani Mbhokota
The properties division of JSE-listed ADvTECH, Africa’s leading private education…

Rode & Associates says Capitalization rates are now firmly on a rising path

Sep 22, 2017
Johan Hattingh
Property, whether directly held or listed, was the darling of South African investors…