Property development group Freedom Property Fund (FPF) listed on the JSE’s real estate holdings and development sector of the exchange’s main board last week.
FPF is the third company from the property sector to list on the JSE following the listing of Visual International Holdings and Atlantic Leaf Properties on AltX earlier this year.
“FPF will deliver long-term sustainable capital growth through unlocking the opportunities in its immediate and long-term development pipeline. “The company has a long-term view on investing in South Africa and eventually into the rest of Africa, and we see incredible potential for growth, with proven demand for the product we are launching,” FPF CEO Tyrone Govender said at the event.
FPF was established specifically to list on the JSE with a diverse portfolio of industrial, residential and commercial property assets. Its current portfolio is valued at R1.56-billion.
Govender explained that this platform would allow FPF to unlock the value of these assets by providing the platform to secure competitive development funding, which has become increasingly difficult in recent times. It would also provide shareholders access to a market on which to trade their FPF shares.
Capital Growth FundHe pointed out that the company was a capital growth fund and its income would therefore be reinvested in its portfolio, adding that the market has responded positively to news of FPF’s listing.
“While our listing provides shareholders with the prospect of participating in a diverse portfolio of property assets, our strong weighting in high-demand residential property development has attracted lots of attention,” Govender said.
He commented that residential property development that is held for lease would become an increasingly hotly contested sector, which is gaining critical mass, and that the company is the first to take this concept to the JSE main board as a property capital growth fund.
“Because we are at the forefront of this growing opportunity, undoubtedly the market will be watching FPF’s progress with interest. We are confident they will be encouraged by our performance,” Govender noted.
He stated that it is appropriate that the launch of FPF takes place on the twentieth anniversary of South Africa’s transition to democracy.
“While we are conscious that everyone is ultimately in business to provide a healthy return to shareholders and make profits, FPF has the distinction of being able to do just that as well as make a significant contribution towards corporate social responsibility within South Africa for our people. “The listing today marks the beginning of a new era for FPF,” he concluded.