“As a publicly listed company, we are better positioned to execute our value creation and growth strategies,” said Accelerate Property Fund Non-Executive Chairman Tito Mboweni.
“We look forward to utilising this platform to invest in well priced income producing properties to optimise capital and income returns for shareholders.”
Accelerate is a property company that was formed for the purpose of investing in direct real estate, income generation and capital growth. The fund will be classified as a REIT upon listing.
The fund has a portfolio of 51 high-quality properties across South Africa, which includes the ownership of two prominent regional shopping centres.
“Listing on the JSE marks a major milestone for the company. Accelerate has extremely strong fundamentals and an exciting future ahead,” Accelerate Property Fund CEO Michael Georgiou said.
“We have a strong and experienced management team that is focused on realising value for shareholders and delivering on our targets.”
Upon listing, the fund has an initial portfolio independently valued at over 5.9 billion rand. The portfolio comprises a total Gross Lettable Area (GLA) of 440 520m² consisting of 67 per cent retail space, 22 per cent office space, 7 per cent industrial, and a 4 per cent specialised auto dealership component.
Accelerate’s property portfolio includes Fourways Mall shopping centre, The Buzz shopping centre and Oceana House. These are part of Accelerate’s 10 largest properties by market value.
Accelerate’s listing price is at 4.88 rand per share, with a 9.71 per cent forward yield rolling 12 months to 30 November 2014.
“Being listed will allow us to build a stronger, more focused Accelerate business. We are aiming to consolidate our position and grow our asset base maintaining the strong bias toward the defensive retail sector,” said Georgiou.