Inkunzi to list on JSE next month

The Star Early Edition - - BUSINESS REPORT - Roy Cokayne

INKUNZI Stu­dent Ac­com­mo­da­tion Fund (ISAF) is set to be­come the JSE’s first spe­cial­ist stu­dent hous­ing real es­tate in­vest­ment trust (Reit) when it lists on the bourse in Septem­ber.

Kameeel Ke­shav, the chief ex­ec­u­tive and joint founder of Inkunzi, said yes­ter­day that it ex­pected to list with a port­fo­lio of 12 prop­er­ties com­pris­ing 6 500 beds val­ued at R2.25 bil­lion that would be ac­quired at the same time as the list­ing from seven dif­fer­ent pri­vate prop­erty de­vel­op­ers.

Ke­shav said the ra­tio­nale for the list­ing was to get cash from in­sti­tu­tional and pri­vate in­vestors to ac­quire the prop­er­ties.

He said Inkunzi had iden­ti­fied an im­me­di­ate ac­qui­si­tion pipe­line of R2.5bn and en­tered into first right of re­fusal agree­ments with the de­vel­op­ers of th­ese prop­er­ties.

Owen Nkomo, the chief in­vest­ment of­fi­cer of Inkunzi and a co-founder of the fund, said they would also part­ner with de­vel­op­ers on green­field projects.

The plan is to raise R1.7bn through a pri­vate place­ment prior to list­ing.

Ke­shav said they were look­ing for between 25 per­cent and 30 per­cent di­rect black own­er­ship in Inkunzi, in­clud­ing an in­cen­tive struc­ture for the fund’s about 130 em­ploy­ees.

BEE staff scheme

“We’re fo­cus­ing on cre­at­ing a plat­form for true broad-based em­pow­er­ment through our staff in­cen­tive scheme fa­cil­i­tat­ing the op­por­tu­nity for staff to own a stake in the com­pany they work. This means from the chief ex­ec­u­tive to the se­cu­rity guards and clean­ing staff at the assets will all own a share in ISAF,” he said.

The assets that would be ac­quired at list­ing were at the Univer­sity of Pre­to­ria, the Univer­sity of Jo­han­nes­burg, Vaal Univer­sity of Tech­nol­ogy, North West Univer­sity, and the Nel­son Man­dela Met­ro­pol­i­tan Univer­sity in Port El­iz­a­beth.

Ke­shav said they were ex­cited about the planned list­ing be­cause it ad­dressed one of South Africa’s key is­sues of stu­dent ac­com­mo­da­tion apart from the strong so­cio-eco­nomic as­pect through the di­rect black own­er­ship.

“Inkunzi brings some­thing unique and fresh to the listed real es­tate space, of­fer­ing in­vestors di­rect ac­cess to a counter-cycli­cal as­set class.

Ke­shav said the Depart­ment of Higher Ed­u­ca­tion and Train­ing es­ti­mated there was a short­fall of about 25 000 beds for stu­dents in the coun­try.

Nkomo said Inkunzi’s loanto-value at list­ing was ex­pected to be about 25 per­cent, which pro­vided some head­room for growth.

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