Safari Investments RSA Limited (“Safari”) became the latest listing under the “Real Estate Holdings and Development” (REIT) sector on the Main Board of the JSE today with the short code “SAR”. Safari has a market capitalisation of R1.278 billion at a listing price of R7.52.
Safari concluded a successful private placement on 2 April 2014 and the Board approved an issue of 49 135 173 new Safari shares with an average subscription price of approximately R7,63 per private placement share. This resulted in a capital raising of R374,5 million.
The quality of the Safari portfolio is indicated by the high level of pre-commitments received from key institutions such as, Stanlib, the PIC, Grindrod and WDB Investments. Safari Chief Executive Officer, Francois Marais, commented: “We are proud to list on the Main Board of the JSE and welcome all new shareholders. With this listing we not only unlocked value to shareholders that believed in Safari as a long-term investment, but also provide a very unique retail property investment opportunity to new shareholders wanting to diversify their investment portfolios.”
“The listing provides us with capital that will support our R1 billion project pipeline under consideration. This includes the greenfield development in Swakopmund, Namibia,” Marais added.
Safari was founded in 2000 by a group of private investors that created a platform for smaller investors to participate in quality retail property assets. In early 2013, a strategic decision was taken by the shareholders of Safari to diversify its sources of funding and take advantage of the favourable legal and tax framework provided to qualifying property entities in terms of the REIT legislation.
Safari’s property portfolio comprises four well-established and strategically located retail properties, some in affluent townships including prominent nodes such as Mamelodi, Atteridgeville and Sebokeng.
Safari focuses primarily on quality income producing properties through investments and developments in retail centra held directly or indirectly. The company’s, development arm covers greenfield developments of land into retail centra and brownfield developments through refurbishments, upgrades or other improvements to existing retail buildings. All properties in the Safari portfolio were developed by Safari Developments.
Marais said: “This listing is the result of a number of years’ hard work and we are excited about Safari’s new chapter. We will continue to grow our asset base by developing and investing in fairly valued income producing properties. Safari will focus on the management and re-development of a quality retail property portfolio that provides good growth opportunities and optimises capital growth.”
Apart from the Swakopmund waterfront project in Namibia, Safari has local pipeline opportunities that include the redevelopment of properties to enhance value and support longer-term income and capital growth.
“The JSE is always excited to welcome new companies to both widen the opportunities available to investors and assist companies reach their potential. Safari’s portfolio gives both South African and international investor’s additional exposure to listed retail property,” says Zeona Jacobs, Director: Issuer and Investor Relations at the JSE.