Mauritius-based New Frontier Properties

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Mauritius-based New Frontier Properties eyes the JSE

JSE-listed property investors will soon get access to developing markets outside South Africa, as the Mauritius-based New Frontier Properties (New Frontier) eyes a listing on the local bourse.

New Frontier on Tuesday announced a private placement of one million shares to investors at US $1 (R11.50*) per share.

The company which has a primary listing on the Stock Exchange of Mauritius will embark on a secondary listing on the Alt X and trading is expected to start on January 21.

It will list under the Real Estate Holdings and Development category.

New Frontier notes that it is seeking a local listing to broaden its investor base and source additional capital to fund its growth ambitions.

According to New Frontier’s pre-listing statement on SENS, the company’s strategy is to acquire and develop income-generating assets “primarily situated in frontier markets outside South Africa but will pursue strategic investments in developed markets on an opportunistic basis.”

Its income-generating assets, New Frontier says, will comprise of completed buildings which are held directly or indirectly.

“New Frontier will target income generating properties with strong sustainable income from high quality tenants with strong likelihood of renewal of leases on expiry,” it says.

The assets will provide New Frontier a stable income and a strong balance sheet for it to fund opportunities in developments. On the developments front, it will look at underdeveloped land or developments fit for refurbishments of existing office, mixed use, retail and light industrial properties.

The company not only promises income-generating assets, but also affording investors with a “satisfactory yield”.

New Frontier has made acquisitions ahead of its local debut. It has acquired Coastal Building Holdings Limited – which is a company incorporated in the British Virgin Islands and owns a two-storey commercial office building. The property has an annualised property yield of 8%.

“It is considered that New Frontier will present an attractive opportunity to South African investors,” it says.

“It is the view of the board of New Frontier that South African property investors who have enjoyed strong and stable returns from the South African real estate sector over the last few years now see comparatively attractive value in carefully selected opportunities in real estate markets outside South Africa.”

Over the last year the listed property sector – which is worth more than R300 billion – has seen a number of listing. The JSE’s Alt X has been a firm favourite platform for the listing of foreign companies, which offer offshore earnings. The local bourse has recently seen the listing of London AIM-listed Sirius Real Estate Limited (Sirius), which owns office and industrial properties in Germany.

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