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Property company listing on AltX

Jan 22 2014 17:57
Cape Town - Visual International will list on the JSE AltX next month.

Established in 1993, Visual International is a South African property development company that develops mixed-use residential suburbs for the middle-income market.

It had grown its assets to around R126.5m. Its net asset value is around R60m and spans some 80 000m² of developable bulk that is ultimately expected to produce real estate investment of around R2bn.

Visual International intends to raise R33m prior to listing on the AltX, through the issue of 66 000,000 new shares at R0.50 per share.

This will unlock the next chapter of its growth path, with the capital raised applied to fast-tracking its residential development plans at its flagship Stellendale Village over the next two years.

The Stellendale Village development is a 22ha mixed-use residential suburb just off the Stellenbosch Arterial in Kuils River, Cape Town, which will ultimately provide some 1 500 homes to middle-income households when completed.

Visual International has already developed 440 homes at Stellendale Village, with a further 63 under construction and plans to unlock further phases of development at Stellendale Village, including its integrated retirement estate.

It will also acquire about 15% of the apartments in the precinct and make them available to rent.

The upshot of all this is a two-year long-term earnings per share growth forecast of 33,5% for Visual International.

Being a long-term play focused on capital growth, Visual International plans to reinvest all profits for its first five years after listing without paying dividends. It will introduce dividends thereafter.

“We’ve set our sights on a JSE main board listing at the right time,” said Charles Robertson, Visual International founder and managing director.

Visual International sees excellent prospects for its business model, not only in the Western Cape, but also in Gauteng.

The new shares to be issued in Visual International’s capital raising equate to 26% of the shares in the company, with 74% held by its executive team and a Kuils River empowerment initiative they have established.

Visual International has already secured a pipeline of future developments and is establishing strategic development partnerships in Gauteng.

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