UK hotel property group set to list on JSE's AltX

Posted On Friday, 09 October 2015 19:45 Published by
Rate this item
(0 votes)

International Hotel Group Limited is looking to become a GBP200m net asset value property company in the next three years.

Helder_Pereira

International Hotel Group Limited (IHGL), which is set to list on the JSE later this month, is looking to become a £200m net asset value property company in the next three years, says CEO Helder Pereira.

A number of property funds based abroad are taking up secondary listings on the JSE as they look to widen their shareholder bases and raise capital.

The UK hotel-focused company yesterday raised £12.35m by placing 12,350,000 of its shares with invited investors at an issue price of £1 per private placement share.

IHGL will raise another £20m in the near future.

The company will have a primary listing on the Luxembourg Stock Exchange and a secondary listing on the JSE’s AltX.

The invited investors could apply for private placement shares to be listed on either the European share register or the South African share register.

Mr Pereira said the company would expose South African investors to high-quality hotel assets in an uncomplicated property company structure.

“We are giving South Africans a good opportunity to benefit from top hotel assets’ good performances. We are a strong rand hedge investment for them,” he said.

Mr Pereira is also CEO of the Redefine BDL Hotel group, a hotel management company.

Redefine has a 25% interest in the group. IHGL will have £16m worth of assets.

IHGL will lease out the hotels and give management contracts to clients, one of which will be Redefine BDL Hotel Group.

Mr Pereira said IHGL would be structured simply as complicated property structures had struggled in the past.

Hospitality Property Fund was the first hotel asset specialised group to list on the JSE. It is a real estate investment trust and by definition pays out the majority of its income to shareholders. However, it has battled to do so given a struggling tourism industry.

It previously had an A and B dual-unit share structure, which it has subsequently decided to abandon. The units had catered for different risk appetites, but the holders of B units found themselves receiving decreasing distribution payments.

Source: Business Day

Last modified on Saturday, 10 October 2015 07:39

Most Popular

Investec Property Fund launches first REIT sustainability-linked ESG bond in Africa

Apr 22, 2021
Darryl_Mayers_CEO
Investec Property Fund (‘IPF’ or ‘the Fund’) today became the first South African real…

Rethinking office space in post pandemic SA

Apr 20, 2021
90_Rivonia_results
Since the beginning of the pandemic, one of the biggest questions in real estate has been…

4 simple rules to getting a good credit score

Apr 21, 2021
Carl_Coetzee_BetterBond_CEO
Make buying your dream home an informed purchase by knowing your credit score.

EPP’s new app takes tenant relations to the next level

Apr 22, 2021
Tomasz_Trzósło
Johannesburg Stock Exchange listed EPP, Poland’s biggest retail landlord, continues to…

Western Cape ripe with affordable housing potential

Apr 20, 2021
Tuhf_Hi_res24
The TUHF Western Cape regional team believes that even though COVID has had an impact on…

Please publish modules in offcanvas position.