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South Africa’s first self-storage Reit to list on the JSE in November

30th October 2015

By: Anine Kilian

Contributing Editor Online

  

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South Africa’s largest self-storage real estate investment trust (Reit), Stor-Age Property, will list on the JSE in November.

It will be the first Reit of its kind to list on the local bourse.

The decade-old group will list an initial R1.3-billion portfolio of self-storage properties and is forecasting above-average distribution growth in the medium term.

The Reit follows in the footsteps of international self-storage peers, which have consistently outperformed the listed property sectors of the US, the UK and Australia in recent years.

Stor-Age will hold 30% of the company after the listing.

The company aims to raise around R700-million from institutional investors and is targeting a market capitalisation of around R1.2-billion on listing.

The price per share will be finalised after the institutional bookbuild.

“The majority of our listing portfolio assets are considered ‘mature’, which means over 80% tenancy. This stabilises our portfolio, minimises investor risk and provides visibility of earnings, says StorAge CEO Gavin Lucas.

He adds that the group wants to unlock organic growth through rental escalations, increasing occupancy, improving the unit mix and expanding existing properties.

Stor-Age will further look to expand its national footprint either through third-party acquisitions or through the R1-billion pipeline over which the group has a pre-emptive right of acquisition.

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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