Equites Property Fund times its listing on JSE well

Commenting on the JSE listing event, Equites Property Fund CEO, Andrea Taverna-Turisan (right) said the fund was pleased to welcome its new institutional and private shareholders.

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Western Cape-based property developer, Equites Property Fund listed on the local bourse on Wednesday, after completing the private placement of 65 million shares, raising about R650 million pool of capital investment.

Equites listing, represents an expression of confidence in the ability of firms to raise capital via a JSE listing.

It placed 65 million shares with a broad base of high quality investors at an issue price of R10 per share.

The South African listed property sector has seen a number of listings in the last 3 years‚ followed by a large degree of consolidation in the first five months of this year‚ and recently more listings.

Equites becomes the fifth property company to list this year and its listing came shortly after the JSE entry of Freedom Property Fund, Visual International Holdings, Safari Investments and Atlantic Leaf Properties.

The Fund listed in the “Industrial and Office REITs” sector with symbol "EQU" and ISIN ZAE000188843. The Reit structure is replacing the sector’s old property loan stock and property unit trust structures and creates a uniform tax dispensation for the sector.

Equites Property Fund CEO, Andrea Tavern-Turisan said the company now has a significant pool of capital to unlock other opportunities that will invariably be presented to us as a result of our raised profile in the listed sector.

"We have the opportunity to unlock 25 hectares of land and several other brownfield opportunities in the Western Cape market," he said.

The listing, says Andrea Taverna-Turisan, means that the company can reduce its debt down to 3.5% and align its strategy of acquiring nine industrial properties valued at R442.3 million in the next two years.

The group owns a portfolio of 17 industrial and office properties which has 124‚253m² of rental space and is valued at R1.2 billion.

The Johannesburg bourse is seeing healthy debut activity in its property sector.

“JSE is very happy to welcome another established property player on to the JSE,” said Zeona Jacobs, Director Issuer and Investor Relations at the JSE.

The company will announce its interim results in August 2014.

Equites’ merger comprised of Johnny Cullum, Swish Property Group founded by Giancarlo Lanfranchi, Kevin Dreyer and Alex von Klopman’s consortium and Chiluan Holdings founded by Taverna-Turisan.