First truly representative property investment company to list

Posted On Monday, 13 May 2002 10:01 Published by
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A NEW R730-million property investment company will debut on the the JSE’s property loan stock sector on June 10, 2002

A NEW R730-million property investment company, which offers a quality long-term investment proposition and is structured to facilitate greater representation in commercial property on the part of previously disadvantaged groups in SA, will debut on the JSE’s property loan stock sector on June 10, 2002.


The management structure of the new company, iFour Properties, combines the asset management track records of highly experienced individuals within SA property sector, and one of the most experienced property management organisations, with a depth of knowledge and understanding of the country’s emerging investment community that is currently unmatched in the property sector.


“iFour,” comments Les Weil, executive chairman of JHI Real Estate – one of the joint promoters of the new company – “is the first listed property investment company to have achieved meaningful empowerment representation on its board under the non-executive chairmanship of former deputy governor of the SA Reserve Bank, Dr Timothy Thahane.


“This, coupled with the experience of the executive management team led by Anthony Diepenbroek, managing director of listed property company iProp and current president of  SAPOA, will be to the advantage of investors.”


iFour boasts a well-balanced portfolio consisting of 48 investment-grade commercial, retail and industrial properties located in the primary growth nodes of SA’s major metropolitan areas. 


The 58-million iFour linked units to be listed on the JSE  are expected to produce an initial yield of 15,09% at an issue price of 500c.  The company is modestly geared at about 55% debt with interest rates suitably fixed and managed. 


According to Diepenbroek, who together with JHI has spent the past year assembling the portfolio, each of the properties was selected on the basis of its location as well as its value in terms of price and yield, quality of rental income stream and tenant quality.


“As a long-term investment, property has delivered good value to investors over the years despite short-term fluctuations in interest rates.  There is growing recognition among analysts and investment advisors that property should constitute between 15 to 20% of any well-balanced investment portfolio.  The problem in SA is that there is insufficient quality property stock in which to invest,” he says.


“iFour’s property portfolio has been put together specifically to meet investor need in this regard.


“In addition, with a large spread of unit holders – including 1400 iProp shareholders, who receive iFour linked units as part payment for the portfolio –  the units should be highly tradable, opening the way for new investors to enter the property sector.”


While asset management of the portfolio will be handled in-house by Diepenbroek and his team, the property management aspects such as leasing, rent collection and maintenance will be outsourced to JHI, which has a hundred year track record in real estate, and Gensec Property Services in respect of two properties sold by Sanlam into the portfolio.


“The combination of in-house asset management – which avoids potential conflict of interest situations that can arise by outsourcing this function - and outsourced property management, serves the best interests of investors and giving substance to iFour’s founding principles: innovate, incorporate, intelligible and integrity.


“iFour’s goal is to grow the portfolio, both locally and internationally, for the benefit of all unit holders and to achieve a top rating by consistently exceeding the SAPIX  property index benchmarks relating to return.


“Indeed, given the initial attractive yield and growth prospects, iFour should provide an attractive opportunity to investors, including institutions, property funds of funds, individuals and asset managers, particularly those requiring a secure and growing income into the future,” Diepenbroek concludes.

iFour’s board of directors has been constituted to be truly representative and incorporate appropriate empowerment practices while being dominated by non-executives with established credentials in corporate governance, property and asset management,

legal, treasury and international finance.


The executive board members are:


Anthony Diepenbroek, (MD): former MD of iProp who has 23 years experience in real estate construction, project management, land and property development as well as property investment and asset management.


James Nunes: financial director of iProp who has 30 years financial experience.


Non-executive directors are:


Dr T T Thahane (Chairman); former deputy governor of the SA Reserve Bank; former Ambassador of Lesotho to the European Economic Commission; Ambassador to the United States; and vice-president and secretary of the World Bank Group and recently appointed to chair the Export Credit Guarantee Committee of the DTI.


R C Johnson, former president of Sage Properties Ltd (USA) and executive director of Sage Properties.  Currently executive director of Intaprop (developer of Illovo Boulevard) and a director of Kagiso Property Holdings.


S H Mia, chairman of the SHM group of companies which own and develop commercial and residential properties.  He has 30 years experience in large-scale housing and shopping centre development.


K D Moroka, an advocate at the Johannesburg Bar.  She is a director of M-Net, Schindlers Lifts and New Seasons Investments and chairperson of M-Net’s empowerment share scheme, Phuthuma Trust.


E P Moses, former MD of Barlow Rand Properties and a director of RMP Properties.  After retiring as a full-time executive in 1996 he was appointed as a consultant and non-executive director of iProp.


R S Ntuli, founder of Nduna Advisory Services, president of the Johannesburg Chamber of Commerce and Industry and cross-border investment strategy expert.


 U J (Banus) van der Walt, former MD, Gensec Properties Services and currently MD of Sanlam Property Asset Management. He has 27 years property experience with the Sanlam Group.


L I Weil, executive chairman, JHI. Weil has had 25 years property experience, prior to which he spent several years in merchant banking and commerce. He holds numerous directorships and public offices including Property Fund Managers, and the King Committee on Corporate Governance.


Publisher: iFour Prop
Source: iFour Prop

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