JSE GRANTS LISTING OF ISSUED SHARES
Property portfolio Heriot set to list on AltX from next week
HERIOT REIT has said that it would officially list on the AltX next Monday under the Diversified Reit sector after the “JSE granted it a listing of all of its issued ordinary shares” and with its share code.
The group said its issued share capital would comprise of 255 637 135 ordinary shares of no par value and approximately R2.55 billion market capitalisation.
Heriot was founded by current chief executive Steven Herring in 1998 with the purpose of growing a property portfolio that generated sustainable long-term cash flows from blue chip tenants.
It was incorporated and registered as a private company in April, but converted to a fully fledged public company last month.
The company’s financial year end is May 31.
Heriot’s introduction into the property market was through the industrial sector, with properties underpinned by triple net, long-term leases that facilitated quick growth of its asset base. Today, Heriot owns 20 industrial properties valued at R1.58bn.
It is also now a property holding and investment company that is invested in industrial, retail, residential, specialised and commercial properties in South Africa.
Heriot Properties, which holds approximately 70 percent of the properties comprising the portfolio and which is a wholly-owned subsidiary of the company, generated sustainable long-term cash flows from blue chip tenants.
The group has grown in leaps and bounds since inception. In 2003, Heriot Properties diversified its portfolio with the development of a 1 500m² retail centre.
Heriot owns twelve retail centres with a GLA of 119 981m² in central business districts (CBDs), townships and rural areas that focus on the mass market, bringing shopping to the people.
“The centres, valued at R2.09bn are anchored by a high percentage of national tenants with long-term leases and high trading densities that ensure the sustainability of Heriot’s cash flows. The property portfolio further includes seven office properties, including Heriot’s head office located in the prestigious mixed-use precinct, Melrose Arch,” the group said.
The group also added that through its subsidiaries and its interest in Heriot Trust 1 and Heriot Trust 3, it owns a diversified portfolio of 44 properties across the retail, industrial and commercial sectors.
“The properties are situated in areas with high growth potential. The group’s investment strategy is to purchase yield-enhancing assets that can offer consistent long-term rental income growth,” the group said.
Going forward, the board of Heriot is confident that it will deliver a distribution of 72 cents a share for the year ending May 2018.
The board currently has six directors; three independent non-executive directors in Nelson Ngale, Trevor Cohen and Selwyn Blieden, chairperson Dave Friend and chief financial officer Janys Finn as well the chief executive.