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Johannesburg - The property investment subsidiary of Old Mutual [JSE:OML], Omigpi, announced on Thursday it plans to list a R12bn property fund on the JSE by mid-2011.
The Triangle Real Estate Core Fund will be made of 40 retail, industrial and office properties and will be the third-largest fund by value among the JSE's listed property funds, Old Mutual said in an e-mailed statement.
Five large retail properties will make up more than 50% of the fund's value, Old Mutual said.
"The property game has moved, so we need to catch up with it and we require capital. We are doing this to get additional capital to grow," said Omigpi managing director Ben Kodisang during a media briefing on Thursday.
The intention is to raise R5bn in the capital markets.
Kodisang calls it "an attractive investor proposition".
"It enables investors to access emerging markets," he said.
While it will be the third largest property loan stock fund, Kodisang said Omigpi aims to become the top player by 2015.
The fund has no gearing and Kodisang said this will make it easier to undertake developments going forward. Competitors like Growthpoint and Redefine, by contrast, have gearing levels of over 30%.
The portfolio will include some of SA's largest and best-known shopping centres such as Gateway in Durban, Menlyn in Pretoria, Cavendish in Cape Town, Riverside in Nelspruit and Vincent Park in East London.
Apart from retail, the fund will offer 13% exposure to the office sector and 9% to the industrial sector, with the remaining 10% made up of cash and working capital.
The properties have a average occupancy rate of 93.4% at the moment.
Omigpi also announced the former deputy governor of the Reserve Bank, Renosi Mokate, will take up an executive director position at Omigpi in November. It has appointed Diane Radley as CEO-designate, who will join Omigpi as chairperson in January 2011.
The Triangle Real Estate Core Fund will be made of 40 retail, industrial and office properties and will be the third-largest fund by value among the JSE's listed property funds, Old Mutual said in an e-mailed statement.
Five large retail properties will make up more than 50% of the fund's value, Old Mutual said.
"The property game has moved, so we need to catch up with it and we require capital. We are doing this to get additional capital to grow," said Omigpi managing director Ben Kodisang during a media briefing on Thursday.
The intention is to raise R5bn in the capital markets.
Kodisang calls it "an attractive investor proposition".
"It enables investors to access emerging markets," he said.
While it will be the third largest property loan stock fund, Kodisang said Omigpi aims to become the top player by 2015.
The fund has no gearing and Kodisang said this will make it easier to undertake developments going forward. Competitors like Growthpoint and Redefine, by contrast, have gearing levels of over 30%.
The portfolio will include some of SA's largest and best-known shopping centres such as Gateway in Durban, Menlyn in Pretoria, Cavendish in Cape Town, Riverside in Nelspruit and Vincent Park in East London.
Apart from retail, the fund will offer 13% exposure to the office sector and 9% to the industrial sector, with the remaining 10% made up of cash and working capital.
The properties have a average occupancy rate of 93.4% at the moment.
Omigpi also announced the former deputy governor of the Reserve Bank, Renosi Mokate, will take up an executive director position at Omigpi in November. It has appointed Diane Radley as CEO-designate, who will join Omigpi as chairperson in January 2011.
