http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.13Change: -0.02
R/$ = 12.07Change: -0.13
Au 1187.17 $/ozChange: -20.08
Pt 1125.50 $/ozChange: -23.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jun 11, 2012

Black-owned property loan stock company lists on JSE

Back
Ascension CEO Ashfar Mohamed discusses the company's listing on the JSE. Camerawork: Nicholas Boyd. Editing: Darlene Creamer. Recorded: 11.06.2012
 
 
 
Cape Town|Engineering|Johannesburg|Nelspruit|Pretoria|Africa|Ascension Properties|Rental|Africa|South Africa|ZAR|Ascension|Western Cape|Ashraf Mohamed|Nicky Newton-King
Engineering||Africa|Rental|Africa|||||
cape-town|engineering|johannesburg|nelspruit|pretoria|africa-company|ascension-properties|rental|africa|south-africa|zar|ascension|western-cape|ashraf-mohamed|nicky-newtonking
© Reuse this



Black-owned property loan stock company Ascension Properties made its debut on the JSE on Monday.

The company listed its A-linked and B-linked units at R3.80 and R1.90 for each linked unit.

It raised R374-million during a private placement to selected investors prior to the listing.

The company currently owns a portfolio of nine properties located in Gauteng and the Western Cape valued at about R524.1-million and has entered into agreements to acquire a further eight properties, valued at R457.2-million.

CEO Ashraf Mohamed said the company planned both organic and acquisitive growth. “We intend to achieve organic growth through the renovation of vacant portions of some of our existing properties with the intention to secure further anchor tenants and increase earnings.”

Speaking to Engineering News Online, Mohamed said the company's biggest growth potential was in the central business districts of cities such as Pretoria, Johannesburg, Cape Town and Nelspruit. “By upgrading our buildings, we also increase our rental pool,” he said.

The company aims to develop into a multibillion-rand fund over the next few years. “Our strategy is to grow the portfolio by at least R1-billion a year. We have a current pipeline of R2.3-billion, so I believe that Ascension will comfortably meet that target in the foreseeable future,” Mohamed noted.

Assuming that the planned acquisitions are concluded in July, Ascension is expecting to report revenue of R182-million and operating profit of R125.5-million for the year ending June 30.

The proceeds of the private placement would be used primarily to fund the acquisition of the new properties and to reduce debt.

“As one of only three black-managed listed property funds in South Africa, the directors anticipate that the company will continue to be in a position to take advantage of opportunities to secure long-term leases with government and other empowerment sensitive tenants.”

He added that smaller black economic-empowerment players in the property sector looking to exit their government portfolios might opt to dispose of their properties to Ascension in exchange for linked units in the listed company.

JSE CEO Nicky Newton-King said with the listing of Ascension on the JSE, investors would gain more choice in the property investment sector. “We welcome Ascension Properties to the exchange and hope that the listing will be another step in the successful future of this black-owned property loan stock company.”
 

Edited by: Mariaan Webb
Creamer Media Senior Researcher and Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Property Developments News
JSE-listed Tower Property Fund has acquired the Link Hills Shopping Centre, in Waterfall, KwaZulu-Natal for R160.9-million from The Sabre Trust and Matlu Family Trust. The shopping centre, on Inanda Road, was situated in an upper-high-growth residential area, next to...
LSM Distributors has contracted engineering consultancy WSP | Parsons Brinckerhoff Africa to undertake the R100-million restoration of the 54-year-old Kyalami racetrack, situated in Midrand. The restoration will assist in re-establishing it as a venue for...
MAGNITUDINAL POTENTIAL The planned Durban Dig-Out Port will be the largest infrastructure capital project in South Africa, notwithstanding the value and timeframe of current projects
KwaZulu-Natal’s infrastructure development outlook is brighter than South Africa realises it is, considering the current level of megaproject activity in the province, states professional services and advisory firm Deloitte. Moreover, South Africa needs these...
More
 
 
Latest News
Updated 36 minutes ago If President Jacob Zuma fails to implement the remedial action the Public Protector suggested in her report on his private home in Nkandla, the matter might be taken to court, Thuli Madonsela said on Monday. Speaking on The Justice Factor on eNCA, Madonsela...
Updated 44 minutes ago Multinational companies deprive African governments of $11-billion in taxes each year, and G7 world leaders should set up a new global body to regulate corporate taxation, Oxfam International said on Monday. By shifting profits overseas to lower tax regimes,...
Updated 1 hour 3 minutes ago Two Eskom contractors died on Monday afternoon after a pipe burst and produced high pressure steam at the Grootvlei Power Station in Mpumalanga, the power utility said. Spokesperson Khulu Phasiwe said the steam, produced by the boilers, was at a very high pressure...
More
 
 
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
 
 
 
 
 
This Week's Magazine
While strongly welcoming the promulgation of the new Part 101 of South Africa’s civil aviation regulations, governing the commercial operation of civil remotely piloted aircraft (RPAs) in South Africa, the Commercial Unmanned Aircraft Association of Southern Africa...
LSM Distributors has contracted engineering consultancy WSP | Parsons Brinckerhoff Africa to undertake the R100-million restoration of the 54-year-old Kyalami racetrack, situated in Midrand. The restoration will assist in re-establishing it as a venue for...
South African Defence Minister Nosiviwe Mapisa-Nqakula has expressed the hope that the defence budget will be significantly increased over the next five years. She did so while addressing the media in her recent budget vote media briefing. The 2015/2016 defence...
The African Development Bank (AfDB) has been an implementing agency for the Global Environment Facility (GEF) since 2008. The relatively young portfolio has 28 projects over 30 countries on the continent according to the 2014 AfDB and GEF annual report released...
PAUL SPEAR Training and development should be an integral and proportionate part of the long-term strategy of all companies, regardless of their size
Investment in South African youth through apprenticeships and learnerships will not only create direct benefits for businesses but will also contribute significantly to job creation and socioeconomic transformation in the country.
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96