Vividend aims to grow assets

Posted On Thursday, 11 November 2010 02:00 Published by eProp Commercial Property News
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Property loan stock group Vividend says that it aims to grow its assets to the tune of R1.5bn by the end of August next year.

Paul DuncanProperty loan stock group Vividend said on Wednesday that it aims to grow its assets to the tune of R1.5 billion by the end of August next year.

The property fund, which is expected to list on the JSE's main board on November 18,currently has a property portfolio worth R450 million, at a forward yield of 11%.

CEO Ari Jacobson says the group looks to offer enhanced yields to potential shareholders. "Our listing seeks to raise capital for the purposes of growth. "Our pipeline properties look very strong. Our growth will both be organic and acquisitive in nature," Jacobson said.

Vividend has issued 150 million linked units at five rand per linked unit through the private placement, scheduled to close on Friday. The fund said it has already received irrevocable undertakings to subscribe for 83.5 million linked units, amounting to R417.5 million.

The placement is subject to a minimum subscription of 100 million linked units at five rand per linked unit, amounting to R500 million.

Vividend's primary focus is on the mid-tier cost band within the commercial, retail and industrial sectors of South Africa.

Vividend's JSE listing comes just after a month when the Billion Group announced that its black-owned and managed property fund, known as Rebosis Property Fund, would list on the JSE, subject to market conditions.

The intended Rebosis' listing is in December.

The fund said last month that the purpose of the listing is to raise capital to provide capacity to grow the size of the portfolio and unlock value in the development pipeline.

The Rebosis portfolio currently consists of nine high-grade retail and commercial properties, three shopping malls and six large commercial buildings, with an aggregate value of around R4 billion.

The property investment subsidiary of Old Mutual, Omigpi, announced in August that it planned to list a R12bn property fund on the JSE by mid-2011.

Catalyst Fund Managers' Paul Duncan said these developments are a reflection of a cyclical stage in the property market.

He says between 2004 and 2007 peak, the market encountered a lot of activity in terms of listings from unlisted property funds which perceive the yields as being attractive.

"Then there was some consolidation in the market between 2007 and 2009 when counters such ApexHi were absorbed into Redefine Properties."

Duncan cautions that investors should balance the value proposition that the company offers in the long-term against the risks that may be exposed to.

Last modified on Friday, 22 November 2013 14:54

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