Loan stock firm Ambit gears for JSE listing

Posted On Monday, 12 January 2004 02:00 Published by eProp Commercial Property News
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Property loan stock company Ambit Properties, a joint initiative of Absa Commercial Property Finance and Marriott Holdings, is set to be listed on the JSE Securities Exchange SA on February 4.


Property-Housing-ResidentialGeoff Cannings, Absa Commercial Property Finance GM, also confirmed yesterday that an abridged prelisting statement giving details of the listing would be released in the next few days.

Cannings said Ambit would have a forward yield of 12,75% for the next 12 months.

"It will offer good value for investors in today's market," he said. The company would initially have assets of about R600m and a market capitalisation of about R320m.

Cannings said that they would be looking to bulk up the portfolio in the coming year. "To that end we are already negotiating with certain vendors."

He said they were hoping to beef up the fund to the tune of R1bn within a year.

In terms of the geographic spread of Ambit's portfolio, 64% would be based in Gauteng, 6% in Cape Town, 14% in Durban and 16% in other areas. Ambit has also opted for a portfolio with an emphasis on retail properties.

Cannings said retail properties made up 57% of the portfolio, while office properties contributed a sizeable chunk of the portfolio at 31%. Industrial properties contributed 12% of the portfolio.

Although some pundits expect the office market to remain oversupplied for at least another year, Ambit is confident about this section of their portfolio.

"I think we've got good leases on the office properties we've purchased," said Cannings.

Ambit is one of the two new property funds that the market expects to be listed in the first quarter of this year.

The other, promoted by Sanlam Property Asset management, is also being targeted for listing during the first quarter of this year.

Sanlam Property Asset Management was also the promoter of property loan stock company MICC Property Fund, which was listed in October last year.

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