JSE-listed real estate investment trust (Reit) Freedom Property Fund has achieved maiden headline earnings a share of 1.49c and headline earnings of R13.2-million for the financial year to February 28.

“It has been a time of growth and focus on setting up the necessary management structures and systems to manage and implement the acquired projects, thus optimising value for all stakeholders,” the company said in a statement on Monday.

The fund’s revenue of R42.78-million was significantly up on the forecast of R28.3-million, owing to the higher-than-forecast sales of development properties.

The forecast revenues for the sale of development properties of R8.4-million were also greatly exceeded at R23-million.

While investment property revenue was down slightly on forecast, management was confident that the expanded facilities at the R620-million Steelpoort Industrial Park, in Limpopo, would add to the group’s revenue base in the coming year.

Freedom also developed a further six industrial units, or 6 306 m² of revenue-generating industrial facilities, at Steelpoort Industrial and would continue to do so as demand required. The next two units would be completed by the end of this month and were expected to be fully tenanted by that time.

The developed portion of the industrial park comprised 20 000 m² of fully let mini, midi and maxi units, with a further 28 000 m² available for development.

“[With] Steelpoort, in the province’s platinum belt, experiencing rapid development owing to a number of new mines being established, [this area] is prime industrial land to own,” the fund said.

“The scepticism that surrounds investing in the mining areas, owing to the events that unfolded in Rustenburg, is justifiably allayed when considering that the mining dynamics of Steelpoort are of a different nature.

“Mining in this area is highly mechanised and has a primary focus on platinum and chrome production. The number of  mines which have opened in the area over the past two- to five-year period are testament to the fact that  it is a growing area and is to be recognised as an area in which to invest,” the Reit highlighted.

Freedom was working on having a further 6 ha of land rezoned for industrial warehousing purposes, which would allow for a further 36 000 m² of industrial warehousing to be built. Construction, which was expected to start in September, would cost about R240-million.

Freedom also noted that its 12-phase Tweefontein residential development, also in Steelpoort, was  on track for completion by 2020.

“The demand for residential units is currently between 15 000 and 20 000 units and continually expanding owing to new mines opening in the area. A major mining group operating in the area has also expressed an interest in taking up 2 000 opportunities immediately on completion,” the fund highlighted.

Demand by existing mines in the area has far exceeded the supply as was evidenced by ongoing enquiries. “This demand will be further underpinned by new mines to be established in the area,” it noted.

An agreement with chrome miner Samancor, whose operations border Freedom's residential land, supported its residential development. 

The fund was also developing the La Bonne Vie residential area, in Montana, Pretoria, with 90 sectional title opportunties – expected to be completed in December; the Langebaan Beach Resort, in the Western Cape; and the Gevonden development, which comprised 43 residential units in the medium level segment, in Stellenbosch.