LISTED
BY MORNE REINDERS
JSE Listing Provides
Building Blocks
For future growth
D
elta Property Fund is a relative newcomer to the
listed property sector of the JSE’s main board.
The fund listed at a linked unit price of R8.20
on 2 November 2012 with a portfolio of 20 properties
valued at R2.1 billion and a market capitalisat ion of
R1.35 billion. The fund specialises in single-tenanted
buildings in nodes attractive to government and SARS.
The office portfolio represents a 72% sovereign underpin
to a substantial portion of the earnings and shields it from
private sector risks such as tenant insolvency.
“As founders we saw an opportunity for a 100% blackmanaged property fund to strategically identify and secure
government-tenanted properties,” says Sandile Nomvete,
CEO of Delta Property Fund. “This is a niche sector,
requiring specialist skills and operational systems, which
has always been our springboard to success.
lined up. There are a number of factors investors consider
before buying equity in a company and we had to make
sure we offer a compelling proposition in each instance,”
Nomvete explains. According to Bronwyn Corbett, Chief
Financial Officer, investors want to invest in funds that
offer superior yield, strong future growth potential and an
experienced management team, especially in the current
low interest rate environment.
“We knew we had a unique investment case, but realised
you only have one chance to approach the market, so you
have to do it right,” continues Nomvete, “So we appointed
Nedbank Capital as bookrunner, corporate advisor and
sponsor together with Bowman Gilfillan to guide us
through the legal process.”
“We knew where to find high-yielding, quality assets
and had the relationships and knowledge to negotiate
good deals, but raising capital to establish and grow such
In order to list on the JSE’s main board a company has
to comply with numerous JSE Listings Requirements
as well as the prescriptions of the Companies Act. Once
approval to list has been obtained, the company and its
advisors have a number of regulatory hurdles to clear
Delta’s vision is to grow the portfolio to approximately
R7 billion by 2017 to ensure critical mass and liquidity. “In
order for us to launch Delta, we wanted to raise up to R980
million with the listing to fund the acquisitions we had
“We had to ensure our corporate governance
procedures comply with JSE Listings Requirements,
and appropriately structured Delta’s board in line with
the recommendations of the King Code on Corporate
Governance,” comments Corbett. “As a board and
a portfolio proved challenging - and so the idea of listing
Delta was born,” explains Nomvete.
52
Commercial Handbook 2013
before potential investors can be approached.
www.reimag.co.za