Redefine Properties, which became a REIT (real estate investment trust) on 1 September 2013, will be the first property company in South Africa to launch a DR programme. Later today, it will launch its American Depositary Receipt (ADR) Programme on the over-the-counter (OTC) market in the United States through a sponsored ADR program with BNY Mellon.
Each Redefine Properties DR represents ten ordinary share and trades on under the symbol “REDPY”. Redefine Properties ordinary shares trade on the JSE, where it has been listed for over 13 years, under the symbol “RDF.”
Redefine has a growing international ownership base, which over the past five years has grown tenfold to just over 15%. US based investors represent just under half of these international investors, which by country, is the second largest investor base.
By establishing the DR programme, Redefine hopes to make investing in Redefine accessible to more international (especially US) investors. Redefine would also like to understand its international investors better and the DR programme provides Redefine with information that it currently does not have access to.
Says Andrew Konig, Financial Director, Redefine, “The REIT structure is an international benchmark for property ownership in a listed environment and is widely recognised as the worldwide industry standard. The DR programme is therefore an ideal platform to reach the anticipated growth in international interest and encourage international investment in Redefine. Redefine offers US investors sustained and growing income at an attractive income yield with a good prospect of capital appreciation, which is underpinned by diversified quality property assets managed by proven operators.”
“On account of the REIT structure we expect more DR activity in the property sector,” says Lauren de Klerk, Vice President of BNY Mellon’s Depositary Receipts business. “We’ll work closely with Redefine to enhance its profile among investors and broaden its outreach to the US investment community.”