R/€ = 15.26Change: -0.01
R/$ = 14.41Change: -0.03
Au 1057.95 $/ozChange: 0.07
Pt 835.50 $/ozChange: 0.00
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?

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 About Us
RSS Feed
Article   Comments   Other News   Research   Magazine  
Jun 11, 2012

Black-owned property loan stock company lists on JSE

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
© 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 Video News
Latest News
French conglomerate Bollore may have to halt work on the Niger to Benin section of its giant West Africa rail project after a rival company won a court order to stop it going ahead. The dispute concerns rival rail schemes in the area.
A week ahead of the second annual gathering of the Forum on China–Africa Cooperation (Focac), in Johannesburg, the JSE is rolling out the proverbial red carpet for Chinese investors looking to Africa’s largest bourse for possible investment opportunities, calling...
The South African National Roads Agency Limited (Sanral) applied for leave to appeal on Friday against the Western Cape High Court judgment that set aside the approvals that would enable it to toll sections of the N1 and N2 freeways in Cape Town. This prompted the...
Recent Research Reports
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
This Week's Magazine
The BMW Group will invest R6-billion at BMW Group South Africa’s (BMW SA’s) Rosslyn plant to produce the next-generation X3 sports-activity vehicle (SAV) for the local and export markets. Rosslyn will continue production of the current 3 Series through its lifecycle,...
The lack of consequences for poor performance and transgressions on the part of contractors remains a significant hurdle to tackling South Africa’s service delivery challenges, delegates heard at the Consulting Engineers South Africa Infrastructure Indaba, on...
City of Ekurhuleni executive mayor Mondli Gungubele earlier this month officially named the city’s bus rapid transit (BRT) system, Harambee.
NICK CHRISTODOULOU As about 58% of data stored by organisations is dark, they must identify this dark data to expose risks and valuable information
About 58% of unstructured data stored by companies is dark data, which means that the value or regulatory importance of the data has not been determined. Subsequently, most of the stored data add costs, rather than increasing revenue or reduce regulatory risks, says...
BRIAN VERWEY Effective management, review and administration of non-core elements can improve business operations and increase revenue and decrease unforeseen risks
Effective logistics, import/export and manufacturing consulting services require detailed industry knowledge and experience, but can add significant value to these industries by providing expert advice on various technical elements in their value chains, says...
Alert Close
Embed Code Close
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
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