Equites is targeting to grow the portfolio to 4 billion rand within five years.
The Western Cape based fund is intending to expand into other regions in the country as it grows its portfolio.
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“It is our hope and intention to be in those two markets (Gauteng and Kwa-Zulu Natal), we are engaging with some developments with the intentions of unlocking some opportunities in the near future,” Equites Property Fund Limited, chief executive officer Andrea Taverna-Turisan told CNBC Africa.
Taverna-Turisan added that his company was intended to raise 650 million rand that will reduce Equities’ debt to below five per cent.
“We have a debt facility in place with Nedbank for 600 million that will allow us to undertake programmes in our pipeline,” he added.
The Equites fund is the result of a merger by three Cape-based property groups, being the Airport City Consortium, the Swish Property Group and Chiluan Holdings.
Taverna-Turisan noted that the company will be focusing predominantly in industrial distribution sector as the three vendors have a history of unlocking prime distribution warehousing in the Cape market they are looking to capitalise on.
The company is optimistic that its shares will trade lucratively upon listing.
“It’s not a one day game but a five day game for us, we hope we have a demand for our share that we have noticed on the market so we are hoping for an uptick upon listing but in the short term it’s not relevant to our strategy.”
Equities is a property investment company structured as an internally managed Real Estate Investment Trust.
Its business will focus on long-term investments in the top-end of the industrial property sector. Equities will list on the JSE on 18 June.
Taverna-Turisan says the company will focus on delivering on promises, being able to grow distributions year on year above industry averages which is the the most critical one for its shareholders.