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Johannesburg - Freedom Property Fund has listed on the JSE and will focus on the residential market, but with a difference, said CEO Tyrone Govender in an interview with Fin24.
Freedom made its debut on the JSE on Thursday with an initial market capitalisation of R1bn.
"The fund’s diverse portfolio, however, includes residential, commercial and industrial property assets of R1.56bn," said Govender.
"The focus of Freedom would definitely move towards the residential market but the residential market with a difference and that is to develop residential properties within the low to medium tier income groups and hold these properties within the fund for rental," he told Fin24.
He said this market has proven to be quite lucrative.
The other interesting component about Freedom is that it has a 3 % gearing on a R1.5bn fund, said Govender.
"[It] certainly does give us the opportunity to access the markets and able to raise competitive financing to then see these projects through to the end."
Govender said the type of investor who would invest in Freedom is one who would be looking at the capital growth prospects and not looking for dividends in the near future.
However, he does foresee that within three to five years time that Freedom would also enter into a space where they would have assets to lease.
"So it’s ideally positioned towards an investor whose particularly looking towards capital growth," he concluded.
- Fin24
Freedom made its debut on the JSE on Thursday with an initial market capitalisation of R1bn.
"The fund’s diverse portfolio, however, includes residential, commercial and industrial property assets of R1.56bn," said Govender.
"The focus of Freedom would definitely move towards the residential market but the residential market with a difference and that is to develop residential properties within the low to medium tier income groups and hold these properties within the fund for rental," he told Fin24.
He said this market has proven to be quite lucrative.
The other interesting component about Freedom is that it has a 3 % gearing on a R1.5bn fund, said Govender.
"[It] certainly does give us the opportunity to access the markets and able to raise competitive financing to then see these projects through to the end."
Govender said the type of investor who would invest in Freedom is one who would be looking at the capital growth prospects and not looking for dividends in the near future.
However, he does foresee that within three to five years time that Freedom would also enter into a space where they would have assets to lease.
"So it’s ideally positioned towards an investor whose particularly looking towards capital growth," he concluded.
- Fin24
