Liberty Two Degrees debuts on the JSE, raises R3.8bn
Liberty Two Degrees (JSE: L2D), which owns Sandton City with Pareto Limited, today listed on the main board of the Johannesburg Stock Exchange (JSE) — in the “Diversified REITs” sector.
An approximate R3.8 billion has been raised following today's listing, comprising R3 billion at listing price to invited investors, with R780 million from Liberty Group Limited using new policyholders funds, who subscribed at a 5% discount to the listing price.
The successful bookbuild process included blue chip institutions and real estate specialists, as well as an allocation to retail investors.
Amelia Beattie, Chief Executive Officer of Liberty Two Degrees said: “Our journey to list Liberty Two Degrees on the JSE is a continuation of our legacy in innovation and investment leadership in property, dating back more than 40 years with the development of Sandton City.
“This is a landmark listing in the South African market featuring super regional and regional assets that are co-owned and managed by an experienced team who have been associated with this portfolio for the last decade.
“Listing this portfolio not only unlocks value for existing policyholders but also provides an alternative investment opportunity to investors and policyholders with an appetite for premium property assets in the listed environment.”
Donna Nemer, Director of Capital Markets at the JSE said: “The JSE is pleased to welcome Liberty Two Degrees to the property sector of the exchange’s Main Board. Today’s listing is the JSE’s 17th this year and it brings the number of listed property sector companies on the JSE to 63 in total, of which Liberty Two Degrees becomes the 52nd to list on the Main Board.”
The JSE’s real estate sector had a market cap of about R731 billion and constitutes some 5.5% of the overall JSE market cap at the end of November 2016. From the perspective of investors, the property sector is proving to be an interesting one.
Thabo Dloti, Group Chief Executive of Liberty Holdings said “the listing of a portion of our prestigious property portfolio is a proud moment for Liberty, and another milestone achieved in our strategy to deliver growth in alternative investment businesses.”
Liberty Two Degrees’ consists of predominantly retail real-estate assets in South Africa, including Sandton City, Eastgate Mall and an interest in the popular Nelson Mandela Square.
Other interests held include Liberty Midlands Mall in KwaZulu-Natal, Liberty Promenade in Mitchells Plain in the Western Cape, Melrose Arch and the newly developed Botshabelo Mall near Bloemfontein.
Other contenders that have also listed this year include Western Cape based property group, Spear Reit, three Eastern European-focused listings — Greenbay Properties (May), Global Trade Centre (August) and Echo Polska Properties (September) — as well as UK-focused mall owner Hammerson, which debuted in September.