Gemgrow declares maiden dividend

17th May 2017 By: Megan van Wyngaardt - Creamer Media Contributing Editor Online

Real estate investment trust Gemgrow Properties declared a dividend of 24.85c per A share and 18.15c per B share in its maiden results for the six months ended March 31.

Investment property increased from R2.4-billion to R4.3-billion for the six months, attributable to an asset exchange with Vukile Property Fund of 14 retail assets of R2.4-billion in exchange for 29 retail, office and industrial properties.

Gemgrow also acquired 100 properties valued at R1.9-billion from Arrowhead. This brought the entire portfolio across retail, industrial and office properties to 129.

“We are excited about the future of Gemgrow and offer shareholders exposure to a unique dual-class share structure with a focus on acquiring assets at attractive yields that will boost growth prospects for the company over time,” CFO Junaid Limalia commented.

Gemgrow has also concluded agreements to acquire R477-million worth of properties at a yield of 11.85%. These acquisitions are still subject to various conditions. These properties are yield- and quality enhancing and cement the Gemgrow strategy of growing the portfolio aggressively through yield-enhancing acquisitions, the company stated.