Property group Delta successfully lists on JSE

With a successful JSE listing now completed, property loan stock group Delta Property Fund is turning its focus to growing its R2.1-billion portfolio.

The black-managed and substantially black-owned group, which listed 119.5-million linked units at R8.20, aimed to increase its portfolio to R7-billion by 2017, CEO Sandile Nomvete said on Friday.

Delta’s portfolio currently comprised 20 mostly government-leased AAA- to B-grade office buildings with a total gross lettable area of 203 261 m2 and an occupancy rate of 95.2% across South Africa.

The listing, and resultant R980-million capital raising, would provide various funding options for future acquisitions and redevelopment projects.

Nomvete said the board had potential acquisitions to the value of about R1-billion under discussion and aimed to move on these within the next 18 months.

Delta also hoped to shift its current portfolio component of 8% retail and 92% office, to a mix of between 10% and 15% retail and 85% and 90% government-leased offices over the short term.

In the medium to long term, Delta aimed to hold a 60% government-tenanted office space and a 40% retail ratio.

Listing on the stock exchange would also allow the group to reduce its gearing levels to about 40%.

The company would release its first year-end financial results under the JSE in February.

Linked units rose to R8.60 by mid-Friday morning.