The company, which made its debut on the Johannesburg Stock Exchange (JSE) on Tuesday, also revealed that the first trade opened at 10.80 rand, giving it a market cap of 4.265 billion rand.
“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,” said company founder and chief executive, Kiriakos Anastasiadis.
“Our track record speaks for itself and we have increased Acsion’s net asset value by more than 100 per cent per year over the past 10 years. Going forward we are comfortable with achieving 20 to 25 per cent growth per year over the next four years.”
According to the company, it is differentiated from Real Estate Investment Trusts (REITS) in the sector as it focuses on new developments completed and capital profits on property developments completed for sale, among others.
“We have a 17 year history of identifying and extracting value from development opportunities and with our approved pipeline currently amounting to almost one billion rand with many future opportunities, we look forward to continuing on this trajectory,” Anastasiadis said.
“We also currently have access to debt facilities in excess of 1.5 billion rand which is sufficient to fund medium term pipeline growth to support our objective of delivering superior NAV uplift for investors.”
The fair value of Acsion’s development pipeline is reportedly estimated at 339.6 million rand, as these developments are completed, it is anticipated that this pipeline will contribute approximately 865 rand 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,” Acsion said.
“Acsion’s existing portfolio of mostly defensive retail assets underpins the company’s growth ambitions. The portfolio comprises a total gross lettable area (GLA) of 188,416 m2 and is independently valued at 3.2 billion rand.”