“The listing of Safari provides potential investors with a unique opportunity to invest in a retail portfolio consisting of high quality, high growth assets based in high growth township areas that offers a community retail focus with a strong financial position and an attractive pipeline of projects,” said Francois Marais, chief executive officer of Safari in a statement.
The listing of the shares will be implemented together with a capital raising of approximately 315 million rand to 400 million rand, through the private placement of new ordinary shares in Safari with selected eligible investors.
The company stated that all proceeds of the offer will be used to settle debt and free up existing facilities of approximately 600 million rand for projects.
The group, which was founded by Marais 14 year ago, offers small investors a platform to invest in high growth township areas, including prominent nodes such as Mamelodi, Atteridgeville, Sebokeng and Heidelberg. The group are also looking to develop a new regional destination centre in Swakopmund, Namibia.
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The group’s property portfolio is currently valued at approximately 1.276 billion rand and comprises of a 100 percent retail portfolio with a total gross leasable area (GLA) and net leasable area of 124 925 square meters and 97 529 square meters respectively.
“Safari is well positioned for organic growth and greenfield development. Based on demand and commitments from national tenants, we currently have over 1 billion rand of projects under consideration. This includes the addition of approximately 45 000 square meters of retail space by way of further developments in Atteridgeville and Sebokeng and the greenfield development in Namibia,” added Marais.
The group’s Denlyn Centre in Mamelodi, has a GLA of approximately 42 200 square meters which includes a recent 19 000 square meters expansion while Atlyn Centre in Atteridgeville has been expanded to a GLA of 39 680 square meters, with a 1517 square meters South Block extension currently under construction.
Thabong Shopping Centre in Sebokeng will also be expanded to include a Pick n Pay and Edgars, resulting in a total GLA of 41 197 square meters.
“Our centres’ superior performance is evidenced by the 0 per cent vacancy rates and strong rental escalations achieved for the preceding three years. We believe that our entrepreneurial foundation, extensive experience and low-risk approach to development will allow us to continue to deliver stable, resilient cash flows supported by significant long-term income generation over time,” explained Marais.