Commercial property developer Heartwood Properties increased its portfolio value by 30% and its net asset value by 29% within the first year of being listed on the 4 Africa Exchange (4AX).
Heartwood was the first property company to list on 4AX, in March 2018, with a portfolio value of R121-million and shares valued at 66c apiece. Within a year, the portfolio value increased to R157-million, while the share price increased by 11% to 73c apiece.
The net asset value increased to R85-million.
CEO John Whall noted in a statement on Friday that the results were encouraging despite a tough economy where sentiment was very negative.
“We have managed to find pockets of value for our specific development market by remaining focused on our particular asset class,” he said.
The company was planning its next capital raise for provisional cash, should market opportunities arise, including land prices where sellers are prepared to sell at lower prices than before.
Heartwood aims to grow its total assets to R500-million within the next three years and ensure a minimum return on investment of 20% for each new development.
The company’s pending developments are valued at R187-million, and include a 2 560 m2 office building in Bryanston.
Whall urged investors to be ready to act as soon as the property market turned.
“The most promising deals will not be found in a time where closing good business deals are easy and everyone is doing well. It is in times like these that the expertise and agility of experienced investors can unlock exceptional value. And we are in a unique position to have the liquidity to take advantage of this.
“It is also the right time for savvy entrepreneurs to edge in and position themselves for when the economic climate improves.”