Annuity Properties to list on JSE with a flagship portfolio
Annuity Properties Limited (JSE: ANP), a property loan stock company with a quality portfolio of A-grade properties, is to begin trading on Friday, 4 May 2012 on the JSE Main Board in the Real Estate sector.
The newly established Annuity holds an initial portfolio of four properties in prime locations throughout South Africa and has stated its intention to optimise income generation and capital growth for linked unit holders, with the company’s primary focus being investment in commercial and retail properties, together with a smaller percentage of quality industrial properties.
The portfolio on listing comprises the Sasfin head office in Waverley and the Woolworths Call Centre in Cape Town, the Oakfields shopping centre in Benoni, and with the Cell C head office in Rivonia, to be transferred into Annuity’s name shortly after the listing.
The promoters and management of Annuity are highly regarded in the property sector with broad networks and a proven track record in building property portfolios and generating attractive investment returns, demonstrated in particular by their success in promoting and managing the previous listings of Primegro Properties and CBS Properties on the JSE.
Says Derek Greenberg, joint CEO of Annuity, “The team has collectively more than a hundred years of experience in the property sector and more than fifty years of expertise in the listed property space. We look forward to bringing new properties to the market using our established networks.”
In terms of its strategy, the company will seek to provide highly competitive yields, underpinned by quality properties and an aggressive acquisition pipeline to grow the portfolio in excess of R5 billion in the next five years. The company is already in negotiations with various vendors regarding further attractive investment opportunities.
Sasfin, which has sold its head office building in Waverley to Annuity, is both a shareholder and strategic partner of the company, providing access to additional deal flow and strong relationships with South African institutional investors, financial institutions and high net worth investors.
Prior to the listing, selected investors were invited to subscribe for linked units in Annuity via a private placement of 75 597 314 linked units at a cost of R5 per unit. The placement was fully subscribed to raise R378 million, which has been used, together with debt facilities raised from various South African banks, to acquire the initial property portfolio, with further debt being available to fund further acquisitions.
Panico Theocharides, joint CEO of Annuity indicated that, “Annuity will list on the JSE to enable it to raise capital to pursue investment opportunities, whilst also enhancing the public profile of Annuity. We aim to deliver competitive market returns and to aggressively grow the fund with value enhancing transactions. We are very pleased with the support we received on our capital raise and believe we have a good balance of institutional and retail investors in our unitholder base.”
Says Nicky Newton-King, “Over the past five years property has enjoyed being ranked the best performer amongst South African asset classes, with the property index outperforming both the FTSE/JSE All Share Index and the Bond Exchange Association of South Africa All Bond Index. We welcome Annuity to the Main Board of the JSE.”
Looking forward, Theocharides says, “We are extremely excited about the prospects of the Annuity listing. We plan to grow rapidly and are already in negotiations regarding further acquisitions which will enhance our portfolio.” ENDS
About Annuity Properties Limited
Annuity Properties Limited is a property loan stock company holding a portfolio of properties in prime locations throughout South Africa.
• Oakfields shopping centre
• Sasfin head office
• Woolworths Call Centre property
These properties are valued at R456.5 million, with a total GLA of 30 206 m2. The Cell C property will be transferred into Annuity’s name after listing at which time the portfolio will be valued at R586.5 million with a total GLA of 36 025 m2. The company’s objective is to establish a property portfolio with a value in excess of R5 billion in the next five years, consisting of sustainable income-producing properties in the commercial, retail and industrial sectors.