Acsion Limited picks up all the right signals from investors
Seen on Acsion Limited JSE listing: Kiriakos Anastasiadis CEO and Founder of Acsion Limited celebrating with entertainers after blowing the ceremonial kudu horn to mark the company’s listing.
Property developer Acsion Limited (ACS) enjoyed a sparkling debut on the Johannesburg Stock Exchange on Tuesday, with shares opening at R10.80, giving it a market cap of R4.2 billion.
The listing comes shortly after Pivotal Fund which listed on Monday and Germany-based Sirius Real Estate Limited, last week.
Shares rose as higher as R10.81 a share by mid-afternoon and about 130,000 shares worth R1.4m exchanged hands. Bids outnumbered offers 13:1, indicating that the shares were tightly held.
Kiriakos Anastasiadis, founder and Chief Executive Officer of Acsion said: “This listing marks the next chapter in our growth path and paves the way for us to achieve our objective of doubling Acsion’s value in the next five years.
The company promises to offer investors exposure to 100% of its development profits.
“We have a 17 year history of identifying and extracting value from development opportunities and with our approved pipeline currently amounting to almost R1 billion with many future opportunities, we look forward to continuing on this trajectory," Anastasiadis said.
Acsion is a net asset value (NAV) player intending to grow capital, not a Real Estate Investment Trusts (REITS), whereby 75% of earnings have to be distributed.
According to the company, the fair value of the development pipeline is currently estimated at R339.6 million, as these developments are completed, it is anticipated that this pipeline will contribute approximately R865 million to the NAV of Acsion.
The current development pipeline, comprising seven secured development opportunities, will differentiate the portfolio into mixed-use and specialist residential assets, with roll-out expected to take place over a three year period from listing.
The portfolio has a total gross lettable area of 188,416m² and is independently valued at R3.2 billion. It consists of two regional malls in Gauteng (Mall@Carnival and Mall@Reds) and three community malls in Gauteng, Mpumalanga and Limpopo, and a light industrial development in Centurion.
Other property listings over the past 18 months, include Visual International, Accelerate Property Fund, Freedom Property Fund, Tower Property Fund, Safari Investments and Equities Property Fund.
The JSE reportedly has 42 real estate holding and development companies on the main board, with a total market capitalisation of more than R523 billion.
