Indluplace's private placement to raise approximately R400 million

Mr. Gerald Leissner, CEO of Indluplace

Indluplace Properties Limited today confirmed it will list on the main board of the securities exchange operated by the JSE on 19th June 2015. Indluplace is the separate residential property portfolio from the parent group Arrowhead Properties. The private placement of 40 million shares will raise approximately R400 million at an indicative issue price of R10 per share. The private placement opens today at 9 am and will close on 10 June 2015.

Indluplace Properties is South Africa’s first focussed residential property fund with a portfolio valued at R1.6 billion consisting of 95 properties and over 3 600 individual units. “Indlu” is the Zulu word for “house”.

Mr. Gerald Leissner, CEO of Indluplace, said: “The listing will provide investors, institutional and private, with an opportunity to benefit over the long term in both the income streams and capital growth of the company. The capital raise supports our growth and investment aims into the South African residential property market. The Company will continue to grow its portfolio aggressively through acquiring yield enhancing properties and portfolios that provide income from the first day of acquisition.”

Indluplace will invest in properties across South Africa with a focus on affordable housing where a proven demand exists. This will generally be in larger urban centres close to work opportunities and transport infrastructure. There is currently a shortage of affordable, well managed rental housing as evidenced in the relatively low vacancy rates in this market. Similarly good demand exists for affordable student accommodation. The group aims to position itself as an exit for developers or owners of residential stock or portfolios.

Imraan Suleman, executive director of Indluplace said: “Indluplace is focused on owning and growing a substantial residential property portfolio from which it will pay growing distributions to its shareholders. Listed residential property comprises less than 2% of South Africa’s listed property market, compared to over 13% in developed economies.

We believe there is opportunity for significant growth in this sector.”