Indluplace Properties Limited lists on the JSE
Johannesburg, 19 June 2015, Today, the Johannesburg Stock Exchange welcomed Indluplace Properties Limited (JSE: ILU) to the Main Board. Indluplace is the first company to list on the JSE as a Residential REIT and the ninth company to list on the JSE this year.
Indluplace Properties is a focussed residential property fund with a portfolio valued at R1.6 billion and consisting of 95 properties and over 3 600 individual units.
South African listed residential property currently makes up only 2% of the total listed property market. Indluplace intends to invest in residential rental properties within the affordable and student housing market where it believes a demand exists.
Donna Oosthuyse, Director Capital Markets at the JSE, explains the significance of Indluplace’s listing: “Since we introduced the Real Estate Investment Trusts (REITS) structure in 2013, we have seen an increase in the number of REITS listing on the exchange, with the number moving from seven in April 2013 to 32 today. This is a combination of new listings and companies that changed status from Real Estate Investment & Services to the new REIT structure. As the first residential REIT to list on the exchange, Indluplace demonstrates that the REITS structure provides companies with opportunities to diversify their property assets, generate income and be exempt from capital gains tax.”
Indluplace CEO, Gerald Leissner comments: “Indluplace, being the first listed focussed residential property fund, provides a diversification opportunity for traditional property investors and should attract new investors to the listed property sector. South Africa has strong demand for affordable rental housing and this translates to low vacancies and consistent rental growth. The fund will aggressively acquire additional revenue enhancing properties to generate growing income returns for shareholders. The fund has no debt on listing”
Indluplace’s listing followed a successful private placement of up to 40 million shares in the company for an issue price of R10 per share. Through the capital raised, Indluplace intends to grow its portfolio by acquiring yield-enhancing properties hoped to generate income soon after acquisition.
The Johannesburg Stock Exchange is based in South Africa where it has operated as a market place for the trading of financial products for 125 years. It connects buyers and sellers in equity, derivative and debt markets. The JSE is one of the top 20 exchanges in the world in terms of market capitalisation and is a member of the World Federation of Exchanges (WFE). The JSE offers a fully electronic, efficient, secure market with world class regulation, trading and clearing systems, settlement assurance and risk management. www.jse.co.za
H+K Strategies South Africa
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Director: Capital Markets
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