Redefine Properties launches American Depositary Receipt Programme

Redefine Properties Financial Director Andrew Konig said the REIT structure is an international benchmark for property ownership in a listed environment and is widely recognised as the worldwide industry standard.

Redefine Properties has launched its American depository receipt (ADR) programme‚ making it the first property company in South Africa to launch an ADR programme on the over-the-counter (OTC) market in the US.

Bank of New York Mellon is the sponsor for its ADR programme.

Redefine was granted real estate investment trust (Reit) status with effect from September 1 2013.

Each Redefine Properties DR represents ten ordinary share and trades on under the symbol “REDPY”. Redefine Properties ordinary shares trade on the JSE, where it has been listed for over 13 years, under the symbol “RDF.”

The company said that over the past five years international ownership had grown to just over 15% of the total shareholder base with US investors representing just under half of these international investors which‚ by country‚ is the second-largest investor base.

By establishing the DR programme, Redefine hopes to make investing in Redefine accessible to more international (especially US) investors. Redefine would also like to understand its international investors better and the DR programme provides Redefine with information that it currently does not have access to.

Says Andrew Konig, Financial Director, Redefine, “The REIT structure is an international benchmark for property ownership in a listed environment and is widely recognised as the worldwide industry standard. The DR programme is therefore an ideal platform to reach the anticipated growth in international interest and encourage international investment in Redefine. Redefine offers US investors sustained and growing income at an attractive income yield with a good prospect of capital appreciation, which is underpinned by diversified quality property assets managed by proven operators.”

“On account of the REIT structure we expect more DR activity in the property sector,” says Lauren de Klerk, Vice President of BNY Mellon's Depositary Receipts business. “We’ll work closely with Redefine to enhance its profile among investors and broaden its outreach to the US investment community.”

Redefine Properties is a listed property company, with a market capitalisation in excess of R27 billion and directly manages a diversified portfolio of property assets valued at over R29 billion.

The company's property asset portfolio comprises 244 directly held properties located in South Africa, which are valued at over R23 billion and a R6 billion portfolio of strategic listed property securities. Redefine is internationally diversified through its 49% holding in its JSE listed associate Redefine Properties International Limited which in turn holds 66% of London Stock Exchange listed subsidiary Redefine International P.L.C.