Financial services company Liberty Holdings plans to list part of its property portfolio as a real estate investment trust (Reit) to be called Liberty Two Degrees, with an expected net asset value of R10-billion, on the Johannesburg bourse by the end of the year.
The listing of Liberty’s property portfolio, managed by Stanlib, is aimed at augmenting the value proposition to the group’s existing policyholders and unlocking greater opportunities for enhancing the returns profile of the portfolio.
The main board listing will support expansion of and enhancements to the existing property assets and broaden their accessibility to a wider investment community, the company said in a statement on Tuesday.
Liberty is seeking to raise up to R4-billion in new capital at the listing of Liberty Two Degrees, which will be led by CEO Amelia Beattie.
“The capital raise will enable Liberty to expand and enhance its existing portfolio of quality property assets in South Africa and sub-Saharan Africa, gain access to a far wider investor community and significantly add to the dynamics of the listed property sector of the JSE,” said Liberty Holdings group CEO Thabo Dloti.
Liberty will offer existing policyholders an exclusive opportunity to switch up to R3-billion of their current direct property holding into a new property portfolio – the Liberty Real Estate Portfolio – that will invest in the listed entity.
“Policyholders currently invested in the Liberty Property Portfolio can switch into the new portfolio on a limited basis, and those that elect to do so before the Reit lists will get preferential terms. This new portfolio, with returns driven by the Liberty Reit shares, enhances its customer value proposition,” Dloti noted.
Liberty expects the Liberty Property Portfolio to boast a 3% to 5% increase in value upon listing.
The Sandton City Complex comprises around 35% of Liberty’s total portfolio value, followed by Eastgate Mall at 31% and its interest in Melrose Arch, Liberty Midlands Mall and Nelson Mandela Square at 7% each.
Liberty has appointed Standard Bank of South Africa and Java Capital as joint bookrunners and transaction advisers to the listing, which remains subject to the necessary regulatory approvals.