Ac­sion builds a port­fo­lio wor­thy of a bourse list­ing

The Star Early Edition - - BUSINESS NEWS - Roy Cokayne

AC­SION, a spe­cial­ist prop­erty de­vel­oper and owner, plans to list on the main board of the JSE on De­cem­ber 9.

Prior to list­ing, the company plans to raise a max­i­mum of R200 mil­lion via an ini­tial pri­vate place­ment with in­sti­tu­tional and qual­i­fy­ing re­tail in­vestors and clients of se­lected stock-broking firms.

The pri­vate place­ment opened last Thurs­day and closes on Fri­day.

Ac­sion is of­fer­ing 19.8 mil­lion shares for a sub­scrip­tion range be­tween R10.10 and R10.80 a share.

If the of­fer is fully sub­scribed, Ac­sion at the time of list­ing will have be­tween 413.47m and 414.76m fully paid shares, giv­ing it a mar­ket cap­i­tal­i­sa­tion of at least R4.2 bil­lion.

Ac­sion’s ex­ist­ing port­fo­lio com­prises six prop­er­ties heav­ily weighted to­wards re­tail with a to­tal gross let­table area of 188 416m2 and in­de­pen­dently val­ued at R3.2bn.

It in­cludes two Gaut­eng re­gional malls, Mall@Car­ni­val in Brak­pan and Mall@Reds in Cen­tu­rion, and three prom­i­nent com­mu­nity malls – Mall@Eba in eM­balenhle in Mpumalanga, Mall@Lebo in Le­bowak­gomo, Lim­popo, and Moreleta Square in Moreleta Park in Pre­to­ria.

The re­main­ing prop­erty in the cur­rent port­fo­lio is the Si­marlo Rainbow light in­dus­trial de­vel­op­ment in Cen­tu­rion.

The cur­rent 119 416m2 de­vel­op­ment pipe­line com­prises seven se­cured de­vel­op­ment op­por­tu­ni­ties, with the roll-out ex­pected to take place over a three-year pe­riod from list­ing.

Ac­sion ex­pects th­ese prop­er­ties on com­ple­tion to add scale to its de­vel­oped in­vest­ment port­fo­lio, pro­vide sec­toral di­ver­si­fi­ca­tion into res­i­den­tial and stu­dent ac­com­mo­da­tion, and ge­o­graphic di­ver­si­fi­ca­tion within South Africa.

Projects be­ing de­vel­oped for own­er­ship in­clude phase three of Mall@Car­ni­val, Mall@Mout­siya in Lim­popo, phase one of Mall@Ruimte in Cen­tu­rion, De­vel­op­ment@Ben­more in Sand­ton and phase one of Com­mer­cial@Ruimte in Cen­tu­rion.

Two projects de­vel­oped for sale in­clude Res­i­den­tial@Mout­siya and Hyde Park Ter­race.

The fair value of the de­vel­op­ing pipe­line is cur­rently es­ti­mated at R339.6m but over time was ex­pected to con­trib­ute about R865m to the NAV of Ac­sion.

Fu­ture pos­si­ble de­vel­op­ment op­por­tu­ni­ties in­clude the code­vel­op­ment of a 50 000m2 re­gional shop­ping cen­tre in Maputo in Mozam­bique; the code­vel­op­ment of up to 20 000m2 of of­fice space in the Manda Hill Shop­ping Mall precinct in Lusaka in Zam­bia; and the code­vel­op­ment of 15 870m2 of lux­ury res­i­den­tial ac­com­mo­da­tion in Sandown in Sand­ton.

Kiri­akos Anas­tasiadis, the founder and chief ex­ec­u­tive of Ac­sion, said yes­ter­day the list­ing would mark the next evo­lu­tion in their quest for growth.

“We have a 17-year his­tory of iden­ti­fy­ing and ex­tract­ing value from de­vel­op­ment op­por­tu­ni­ties. Our track record speaks for it­self and we have in­creased Ac­sion’s net as­set value by more than 100 per­cent a year over the past 10 years.

“This list­ing will pro­vide in­vestors with a unique op­por­tu­nity to par­tic­i­pate in sus­tained cap­i­tal growth prospects and invest in a spe­cial­ist prop­erty de­vel­oper and owner on the ex­change.”

The in­ten­tion of the list­ing is to pro­vide Ac­sion with a plat­form from which to ac­cel­er­ate fu­ture growth op­por­tu­ni­ties, par­tic­u­larly as its cur­rent gear­ing of 7 per­cent is ex­cep­tion­ally low for the sec­tor and pro­vides sig­nif­i­cant head­room for growth.

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