New property fund set to list

2010-10-06 07:45

Johannesburg – Property development and investment group Billion Group on Tuesday launched the Rebosis Property Fund - a black-owned and managed property fund which will, subject to market conditions, list on the JSE in December.

The purpose of the listing is to raise capital to provide capacity to grow the size of the portfolio and unlock value in the development pipeline the company said in a statement.

The Rebosis portfolio currently consists of nine high-grade retail and commercial properties - three shopping malls and six large commercial buildings - with an aggregate value of around R4bn.

RMB Morgan Stanley and Java Capital are acting as joint bookrunners for the listing.

The portfolio comprises approximately 60% retail and 40% commercial property and is characterised by a tenant mix comprising national government, national retailers and low overall portfolio vacancy rates. 

The largest retail asset in the portfolio is Hemingways Mall, a super-regional shopping centre located in East London.

Rebosis also has a strong pipeline of acquisitions and a strategic relationship with the Billion Property Group.

Through this relationship Rebosis will be able to acquire attractive development assets from Billion Group’s development pipeline at fair value without exposing shareholders to any development risk.

“We are very pleased to announce the creation and listing of the Rebosis Property Fund,” said Sisa Ngebulana, founder of Billion Group and Rebosis CEO.

“We believe that Rebosis presents an attractive equity proposition for investors on the basis of its exposure to attractive retail assets with significant upside potential, coupled with its exposure to long-term commercial leases with national government giving it a solid sovereign underpin.

“In addition, the development pipeline and relationship with Billion Group positions it to cherry-pick value -enhancing development projects without exposing shareholders to development risk.”

Chairperson of the Rebosis board, Dr Anna Mokgokong, said the listing of Rebosis will provide management with the ideal platform to continue to grow the asset portfolio.