Self-storage property REIT fund to list next month

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Self-storage property fund Stor-Age Property REIT is poised to list on the JSE next month as the first REIT of its kind on the exchange.

Self-storage property fund Stor-Age Property REIT is poised to list on the JSE next month as the first REIT (real-estate investment trust) of its kind on the exchange.

The company is looking to raise around R700 million from institutional investors before the flotation. The price per share will be finalised post the institutional bookbuild.

Stor-Age CEO Gavin Lucas said on Monday he was confident that Stor-Age's differentiators and strong market fundamentals bode well for take-up of the offers.

"The majority of our listing portfolio assets are considered 'Mature', meaning over 80% tenancy. This stabilises our portfolio, minimises investor risk and provides visibility of earnings," Lucas said.

He added that these were quality self-storage properties differentiated by high visibility to passing traffic, easy access off busy arterial routes and proximity to middle to upper income suburbs. "This is in contrast to local peers with facilities in far-out industrial areas," he said.

The company is targeting a market capitalisation of around R1.2 billion on listing.

The group will list an initial R1.3 billion portfolio of self-storage properties and is forecasting above-average distribution growth in the medium term.

Stor-Age is following in the footsteps of international self-storage peers who have consistently outperformed the listed property sectors of the US, UK and Australia in recent years.

Going forward, Lucas said the group's experienced focus on occupancy, revenue management and cash flow would drive sustainable distribution growth.


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