McCormick brings new listing to JSE
A new retail-focused real estate listing by wellknown property developer McCormick is coming to the JSE.
A new retail-focused real estate listing by well-known property developer McCormick is coming to the JSE.
It intends listing a R5.5bn retail-focused real estate investment trust (Reit) called Exemplar, which analysts believe could spur more initial public offerings in a sector that has had a quiet couple of years.
Exemplar, which will be chaired by property veteran Frank Berkeley, will hold a portfolio of rural and semi-urban shopping centres, some of which it will develop itself. Berkeley is a former head of property finance at Nedbank.
McCormick has been a developer in SA for about 35 years. The company says it has been an early entrant in the semi-urban and rural shopping centre market.
PRESSURE IN SECTOR
The listing announcement comes as a surprise because listed property is under pressure and fund managers have been smarting from poor returns from the sector.
The FTSE-JSE South African listed property index has lost about 19% of its value for the year to date. Exemplar, however, says it has assembled a highly experienced board and will be led by Jason McCormick, who has been with the group for 16 years.
Jason McCormick said Exemplar should appeal to investors seeking specialised exposure offered by expert investment and management teams. The group would join the JSE main board in the middle of June, he said.
Pranita Daya of Anchor Stockbrokers said the McCormick family had a long and successful track record of developing retail shopping centres predominantly in periurban and rural areas and there appeared to be a healthy pipeline ahead.
She warned, however, that liquidity may initially be a challenge for Exemplar, given that the Reit was likely to have a fairly narrow shareholder base upon listing.
Meago Asset Management executive director Thabo Ramushu said he was expecting more listings in 2018.
“Improvon, which focuses on industrial assets, is looking at a listing and Old Mutual has also been rumoured to be bringing retail assets to market,” Ramushu said.