Tyrone Govender, CEO of Freedom Property Fund
Freedom Property Fund today announced it has secured new debt facilities, which will unlock further development for Freedom.
Freedom has secured an R88 million facility from Nedbank Limited, which it will apply to its Steelpoort Industrial expansion and developing its Tweefontein Residential properties in Limpopo, among other developments.
Tyrone Govender, CEO of Freedom Property Fund, comments: “Our improved access funding is a direct benefit of our listing strategy and is being used to boost our portfolio of income-producing properties, roll out our developments and secure a growing pipeline of new development.”
Freedom listed on the JSE Main Board only four months ago, in June 2014, introducing unique property capital growth opportunity for investors, coming from the fund’s diverse and growing portfolio, which includes residential, commercial and industrial property assets of R1,56 billion.
Its assets comprise income-yielding properties and developments complemented by a secured pipeline of around R10 billion, as well as a long-term development pipeline in decentralised areas throughout South Africa.
In line with Freedom’s strategy to further develop its Steelpoort Industrial property, in the rapidly growing mining town of Steelpoort on Limpopo’s platinum belt, it is developing a further seven industrial units to meet market demand, providing more than 8,050sqm of added gross lettable area (GLA). The first of the new units will be completed and delivered by the end October 2014, with the final unit completed by the end March 2015.
It is also upgrading and expanding existing facilities which will be completed by end October 2015. With its new expansion, Steelpoort Industrial will provide a total of more excess of 27,00sqm of GLA. It also has lease agreements in place for a number of undeveloped stands.
“There’s significant demand for industrial facilities in this area and Steelpoort Industrial is ideally placed to offer facilities to companies providing mining and related services,” notes Govender. “Further available bulk will be developed as demand in the area dictates and new tenants are engaged.”
Also in Steelpoort, Freedom is initiating its Tweefontein Residential development, which provides Freedom over 4,000 residential development opportunities.
“By developing a substantial portfolio of income-generating assets, and securing reasonably-priced debt funding to do this, Freedom will continue to unlock sustainable value and growth prospects for shareholders by capitalising on the largely ungeared value in our property portfolio,” says Govender.
While Freedom’s assets are valued around R1,56 billion, its total debt, including its new Nedbank facility, is a mere R120 million.