L2D adopts short term growth strategy

LIBERTY Two Degrees (L2D), the real estate investment trust that listed on the JSE in December, intends to focus on its strategy of growing the company in the short term through targeted acquisitions and its development pipeline.

The company anticipates growth from carefully identified quality acquisition targets and its development pipeline.

Chief executive Amelia Beattie said yesterday that management believed in the strategic approach of investing in high quality assets that remained resilient during tough economic cycles.

The company anticipates growth from carefully identified quality acquisition targets and its development pipeline.

Beattie added that the company’s management looked forward to deploying capital raised during the listing to acquisitions that had been identified and the developments on the ground.

The company raised R3.8 billion from its JSE-listing last year and has R2.8bn cash available for acquisitions.

It said the final listing costs were R27 million lower than the forecast in its pre-listing statement.

L2D’s portfolio of predominantly retail assets includes the Sandton City Complex, the Eastgate Complex and Melrose Arch.

The development pipeline includes Liberty Midlands Mall, the Eastgate Complex and Melomed Hospital.

The Eastgate Office Tower is scheduled to be completed next month and the Melomed Hospital is on track to meet the beneficial occupation date of June this year.

Beattie said leasing was progressing well at Liberty Midlands Mall and it was anticipated it would be fully leased by completion in March next year.

“Our strategy to expand our portfolio, coupled with the scale, presence and location of retail assets, positions L2D as one of the premier real estate investment opportunities in South Africa,” she said.

L2D yesterday reported a distribution of 4.85c for the one month to December and since its listing.

Shares in L2D dropped 0.97 percent yesterday on the JSE to close at R10.20.