Property loan stock Madison Property Fund Managers today listed on the JSE Limited, under the Real Estate Holdings and Development sub-sector. This is the first listing of a property asset management company in South Africa.
Prior to listing, Madison, one of South Africa’s largest property asset managers, raised a total of R650 million through a successfully private placement and limited public offer, which together were oversubscribed by approximately four times.
Madison has a 10% forward yield on the issue price in terms of the private placement and limited public which is above both the sector average and the long-bond rate.
“Madison has come to market in conditions characterised by a strong appetite for listed property and higher yielding investments, as demonstrated by the oversubscription for linked units prior to listing,” said Madison executive director Wolf Cesman.
“The listing of Madison has provided an opportunity for investors to participate in a unique high yielding instrument in the listed property sector while creating a foundation for the further growth of the business. It provides Madison the ability to attract and retain intellectual capital and ensure adequate succession planning through the incentive of meaningful, tradeable equity participation,” explains Madison executive director Marc Wainer.
The listing of Madison has also introduced meaningful black economic empowerment with KwaZulu-Natal based investment company Clearwater Capital, a black owned and controlled group, owning 10.6% of the total number of linked units in issue.
Madison manages listed property funds ApexHi Properties Limited, Hyprop Investments Limited and Redefine Income Fund Limited, with a combined market capitalisation in excess of R15 billion and combined enterprise value of over R20 billion.
Based on the Listed Property Sector - Annual Review issued by Catalyst Fund Managers (Pty) Ltd, the three listed property funds managed by Madison were in the top four performers in the listed property sector in 2005: Redefine first with a total return of 91%; ApexHi B units third with a total return of 65%; and Hyprop fourth with a total return of 63%.
Madison was launched in 2000 by property doyens Marc Wainer and Wolf Cesman, who have entered into five year service contracts with Madison and remain substantial shareholders. Wainer is regarded as the foremost property dealmaker in South Africa with over 30 years of experience in property asset management, development and property management and Cesman has 38 years’ experience in property asset management, development and property management.
The board of directors will consist of executive directors Wainer and Cesman and three non-executive directors, Harishkumar Kantilal Mehta, Monica Khumalo and Bernard Nackan.
Madison is structured similarly to the listed property loan stock companies, with unitholders investing in linked units and receiving two income distributions a year in the form of interest payments on the variable rate debentures. Madison is represented by the JSE code “MDN”
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For further information, please contact:
Madison Property Fund Managers
T. 011 283 0000
Marc Wainer C. 083 260 7646
and
Wolf Cesman C. 083 675 2227
Or
Marketing Concepts
Sandy Davey / Bronwen Noble
T: 011 783 0700
C. 083 453 6668 / 082 855 4349
Publisher: Madison Property Fund Managers
Source: Madison Property Fund Managers