CBS Property Portfolio Limited today announced an increase in distribution of 16.2% for the year ended 31 October 2005, prior to its listing on the Main Board of the JSE Limited. The distribution grew to 64.5 cents per linked unit.

A groundbreaking year for this company which has been in the market since 1993 and before listing experienced successful trade of its linked shares facilitated by Barnard Jacobs Mellet Private Client Services (BJMPCS) through their Over The Counter (OTC) market. This year CBS’ rental revenues increased by 43%, from R49.3 million to R70.3 million.

CBS’s property portfolio, which was built up over a period of time comprising carefully selected properties originally included in successful property syndications in the Western Cape, soared in value from R464 million to approximately R998 million, an impressive 115% increase.

This was achieved through various purchases, including CBS’s first acquisition in Gauteng, the R70 million Brait Place in Illovo, Sandton,  and other properties, predominantly in Gauteng, from Yieldgro Group including 46% of The Wedge Shopping Centre in Morningside and Wedgefield Office in Bryanston. CBS also purchased Malvern Centre in Queensburgh, KwaZulu Natal and a portfolio of nine properties purchased from Growthpoint Properties Limited.

In terms of structure, Martin Ettin and Derek Greenberg, two  experienced and dynamic property professionals in the sector, joined the entrepreneurial team of Gary Fisher and Sean Mackay as executive directors of CBS Property Group.

Ettin and Greenberg were co-founders of Primegro Properties Limited and drove the successful listing of Primegro.  They were later instrumental in the merger between Primegro and Growthpoint Properties Limited where they also served as executive directors.

With its new robust portfolio assembled, its personally invested team of executive directors and its property management capabilities in place at the close of its financial year, ended 31 October 2005, CBS Property Portfolio opened its new financial year by listing on the Main Board of the JSE Limited on 2 November 2005.

The listing was a resounding success with the institutional portion of the private placement oversubscribed by 7.5 times.

“CBS listed on the JSE under ideal property market conditions including the lowest interest rate in 30 years, a relatively stable economy, liquid institutional investors and a property sector that was the JSE star performer,” explains Greenberg.

“The motivation for listing included facilitating growth through access to new capital and to providing existing and new shareholders liquidity and tradeability. We now have in excess of 1,000 linked unitholders and are pleased to report good liquidity as evidence by the daily JSE trading,” points out Fisher.

Since listing CBS has acquired 7 prime properties for R122 million, including the unique Simonstown Boardwalk Centre, at a combined initial forward yield of 10.38%.

The landmark 3,800m2 Simonstown Boardwalk Centre is located on the Simonstown waterfront and caters specifically for the growing tourist market visiting the area. The other properties comprise 6 multi-tenanted Gauteng office buildings including Gateway Park, Gate Creek and Green Oaks in Midrand, and Duam Properties, ENK Trust and JH Moselein, in Randburg.

These acquisitions are in line with CBS’s stated objective to deliver a sustainable and growing income stream to investors through the acquisition of quality properties.

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Issued on behalf of CBS Property Group:

Martin Ettin
T. 011 215 6440        
C. 083 325 1463

Gary Fisher
T: 021 426 1880      
C: 083 450 2222

Derek Greenberg
T. 011 215 6440      
C.082 552 7244

Sean Mackay
T. 021 426 1880      

By Marketing Concepts:

Sandy Davey / Bronwen Noble
T: 011 880 2213      
C: 083 453 6668 / 082 855 434