Tower Property Fund lists on JSE

Tower Property Fund listed on the main board of the Johannesburg Stock Exchange (JSE) on Friday‚ closing at R10 with 126‚120 shares trading. File Photo: Marc Edwards CEO of Tower Property Fund

Tower Property Fund listed on the main board of the Johannesburg Stock Exchange (JSE) on Friday‚ closing at R10 with 126‚120 shares trading.

The JSE said its listed property sector had seen 16 companies come to the market in the past three years including international fund GoGlobal (GGP)‚ which listed in May.

Although other funds have converted to the new real estate investment trust (Reit) structure‚ Tower was the first new fund to list as a Reit.

The fund’s property portfolio consists of 27 properties worth R1.65-billion, and includes the iconic ‘Cape Quarter’ complex in Green Point, Cape Town, and a 5 Star Green Star-rated office complex in Grayston Drive, Sandton.

Tower’s property portfolio is diversified, comprising 30% retail and 70% offices, and is based 60% in Gauteng and 31% in the Western Cape with a small component in KwaZulu-Natal. The largest asset is Cape Quarter, a trendy mixed use development with blue-chip offices and unconventional retail in one of the most strategic locations in Cape Town.

Launched by Spire Property Group and partners, the management team involves Spire's Marc Edwards, Bruce Kerswill and Keith Craddock, as well as partners Johan Malherbe and Bruce Rogerson, former founding members of Mettle Property Group.

Spire Property Group successfully listed Paramount Property Fund‚ which grew to R3.5bn when it was sold to Growthpoint Properties in 2006.