Tower Property Fund lists on the JSE
July 20, 2013
Johannesburg, 19 July 2013 – Today Tower Property Fund (JSE:
TWR) became the first property fund to list on the JSE under the Real Estate
Investment Trust (REIT) structure.
The JSE’s listed property sector has seen 16 companies come to the market in
the past three years including international fund GoGlobal, which listed this
past May. Although other funds have converted to the new REIT structure, Tower
Property Fund would be the first new fund to list as a REIT. Launched by Spire
Property Group, Tower Property Fund’s property portfolio consists of 27
properties valued at R1.65bn.
“The executives of Tower Property Fund are very excited to list on the JSE’s
Main Board. We offer investors a sustainable, growing source of income and aim
to differentiate the fund from its peers through an active strategy of
‘greening’ properties over time. This focus will initially be on reducing energy
costs and will make our buildings more competitive. We believe that green
initiatives such as Green Building Council accreditation will become
increasingly more important to the marketplace,” says Marc Edwards CEO of the
Tower Property Fund. Spire Property Group successfully listed Paramount Property
Fund, which grew to R3.5bn when it was sold to Growthpoint Properties in 2006.
“We are very pleased to welcome another established property player, Tower
Property Fund, on to the JSE. This is a sector that has enjoyed tremendous
growth in the past ten years and is one that South African investors understand
well,” says Zeona Jacobs, Director of Issuer and Investor Relations at the JSE.
The sector has grown from R61 billion at the end of first half of 2003 to
R328 billion at end of June 2013. The JSE now boasts 45 listed property
companies accounting for 3,8% of overall JSE market capitalisation. A regulatory
change in April 2013 which saw South Africa adopt the globally understood Real
Estate Investment Trust (REIT) structure further positions the exchange as a
venue for property listings. More than 25 countries make use of the REIT model
including the United States, United Kingdom, Australia, France, Belgium, Hong
Kong and Singapore.
South Africa is currently ranked 3rd in the world for raising capital through
the local equity market according to the latest World Economic Forum’s Global
About JSE Limited
As South Africa’s only full service
securities exchange, the JSE connects buyers and sellers in five different
financial markets, namely equities, equity derivatives, commodity derivatives,
currency derivatives and interest rate products. The JSE Ltd offers the investor
a truly first world trading environment, with world class technology,
surveillance and settlement in an emerging market context. It is amongst the top
20 largest equities exchanges in terms of market capitalisation in the world. In
terms of derivatives, the JSE is currently ranked the 20th largest exchange by
the Futures Industry Association (FIA).
For further information, please
Corporate Communications Consultants
Tel: +27 11 463 2198
Director Issuer and Investor