SA’s alternative stock exchange, 4 Africa Exchange Proprietary Limited (4AX) introduced its the listing of its first issuer operating in the property sector, this week.
Heartwood Properties Limited (Heartwood Properties) was announced as the first listing in the property market by 4AX CEO, Fay Mukaddam.
Speaking on the listing she said: “We are very excited about this listing and we welcome Heartwood Properties as an issuer on the 4AX Equity Market. The Heartwood Properties listing is a new venture listing by way of introduction and the shares will begin to formally trade on 4AX today.”
She explained that Heartwood Properties is a property development company with an attractive portfolio of commercial real estate assets focused primarily within the warehousing and office sectors.
“It currently operates predominantly within the Gauteng region, however, opportunities are being pursued in other regions as well. Heartwood Properties has defined its strategy and business model to service businesses operating in the medium to large owner-managed sector; businesses that require warehousing or offices space, and/or may be looking to expand,” she said.
According to John Whall, CEO of Heartwood Properties: “We are optimistic about the exciting opportunities and potential that our listing on 4AX offers us, as well as to potential investors of Heartwood Properties. The listing of Heartwood Properties on 4AX will assist in bringing into fruition our goals, which includes raising capital for deployment in our developments; organically growing the company through new acquisitions, and continuing to enhance our existing real estate portfolio. At the same time, the listing of Heartwood Properties also provides potential investors, and our tenants, a unique opportunity to invest in a dynamic listed property equity.”
The shares listed on 4AX today comprise of 100 000 005 (one hundred million and five) ordinary no par value shares at a listing price of R0.59 (fifty-nine cents) per share.
Pallidus Capital will act as the ongoing external issuer agent of Heartwood Properties. The Head of Pallidus Capital’s Exchange Advisory Division, Johan Fourie, said: “Heartwood Properties’ portfolio is of a high quality. It is currently valued at over R100 million, shows great growth potential with the pipeline properties, and it presents stable income over the short, medium and long-term. Furthermore, its portfolio is underpinned by solid tenancies and lease agreements, continuously delivering sustainable revenue and capital growth to shareholders. The management’s wealth of experience in the South African property industry will also contribute to investor confidence in Heartwood Properties’ shares.”
“The decision by Heartwood Properties to list on 4AX was influenced by the efficient and cost effective alternative model 4AX offers to the market. 4AX brings to the market an alternative model which reduces regulatory costs and inefficiencies, but promotes and is compliant with the highly regarded financial regulatory standards enforced in South Africa,” added Fourie.
The entrepreneurial and innovative nature of Heartwood Properties’ business and portfolio compliments 4AX’s vision to attract investment opportunities of this calibre – offering valuable opportunities for retail and institutional investors. This listing not only enables 4AX to continue its meaningfully contribution to deepening and broadening the local capital markets, but also to enable further growth of the property sector in the country.
“Strained economic growth experienced in the country in recent years has placed key development sectors and businesses operating in South Africa under immense pressure to be able to grow in tougher economic times. And, although markets, investors, business leaders and society, alike, are cautiously optimistic of the vision and promise of the new leadership for the country, there is a renewed buoyancy that can be seen in the markets,” said Mukaddam.
“Business and investor confidence is on the rise and there is definite budding new energy and excitement across all sectors in the country. With this, we are confident that the property investment appetite will grow. And today, we celebrate Heartwood Properties’ commitment to grow its investments, footprint and wealth opportunities across South Africa,” explained Mukaddam.