Ascension Properties lists on JSE
From Left to Right: Shaun Rai, Executive Director, Chris Nissen, Chairman, Ashraf Mohamed, CEO, Wayne Arendse, Executive Director
Ascension Properties Limited, a substantially black-owned property loan stock company, made its debut today on the Real Estate sector of the JSE’s Main Board.
Ascension was established in 2006 as a black owned and managed property loan stock company to invest in assets and opportunities within the commercial property sector in South Africa, focussing on government tenanted commercial office buildings. Ascension is immediately well positioned to take advantage of opportunities for acquisitive and organic growth.
The company listed its A- and B-linked units at R3.80 and R1.90 per linked unit respectively and raised R374 million during a private placement to selected investors prior to the listing.
Ascension currently owns a portfolio of nine office properties located in Gauteng and the Western Cape valued at approximately R524.1 million and has entered into agreements to acquire a further eight properties, valued at R457.2 million.
CEO Ashraf Mohamed says that the acquisitions will boost the company’s initial growth and foresees both organic and acquisitive growth for Ascension. “We intend to achieve organic growth through the renovation of vacant portions of some of our existing properties with the intention to secure further anchor tenants and maximise earnings,” he explains.
Ascension is black managed and substantially black owned and aims to develop into a multi-billion Rand fund over the next few years. The asset management function of the company is undertaken by the asset manager, whereas the property management function is outsourced on market related terms.
Assuming that the planned acquisitions are concluded next month, Ascension is expecting to report revenue of R182 million and operating profit of R125.5 million for the year ending 30 June 2012.
The proceeds of the private placement will be utilised primarily to fund the acquisition of the new properties and to reduce debt.
“As one of only three black managed listed property funds in South Africa, the directors anticipate that the company will continue to be in a position to take advantage of opportunities to secure long term leases with government and other empowerment sensitive tenants. As a BEE empowered listed property fund with significant liquidity, Ascension is an ideal BEE partner to other listed property funds and institutional property investors. In addition, smaller BEE players in the property sector looking to exit their government portfolios may opt to dispose of their properties to Ascension in exchange for linked units in Ascension,” concludes Mohamed.
Says Nicky Newton-King, “With the listing of Ascension Properties on the Main Board of the JSE, investors gain more choice in the property investment sector. We welcome Ascension Properties to the exchange and hope that the listing will be another step in the successful future of this black-owned property loan stock company.”
JSE share code: AIA for the A-linked units
JSE share code: AIB for the B-linked units.
