Financial Mail

P RO P E RT Y Starting small


Property punters will have yet another new counter to choose from when New Frontier Properties makes its debut on the JSE’s AltX this week.

The rand hedge real estate play, which has a primary listing on the Stock Exchange of Mauritius, currently owns only one building: a two-storey office block in the British Virgin Islands worth US$1,7m.

However, according to the company’s listing particular­s, the target is to grow assets to $150m by the end of 2017. New Frontier will look at investing in both completed, income-producing properties and new developmen­ts in countries that are at an early stage of economic developmen­t with high growth prospects. These include certain jurisdicti­ons in East Africa, West Africa and high-growth countries bordering the EU.

New Frontier was founded by, among others, Gary Fourie, a director of the Billion Group, the developmen­t arm of JSE-listed Rebosis Property Fund, and Peter Todd, formerly involved with Redefine Internatio­nal.

New Frontier will be the ninth property company to list on the JSE over the past 12 months. In fact, latest data from the JSE shows that one third of all 24 new listings in 2014 (main board and AltX) were property companies.

Three new real estate counters listed in December alone: Abland’s developmen­t play, Pivotal Fund, with a market cap of R5,2bn; mall owner Acsion, with a market cap of R4,3bn; and German-focused Sirius Real Estate, with a market cap of R3,73bn.

While fund managers are likely to become increasing­ly selective about which new listings they support, there still seems to be plenty of money chasing listed property scrip.

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