Delta International, the first multi-listed property fund to directly invest north of South Africa in select fast-growing African property markets, on Friday successfully transferred its South African listing from the Alternative Exchange to the Main Board of the JSE.
In addition, Delta International’s secondary listing status on the JSE was amended to primary listing status, resulting in the Company holding primary listings on both the JSE and the Stock Exchange of Mauritius Limited.
“The migration to the main board of the JSE is a natural next step in our growth phase and the Board believes it will attract a more diverse shareholder base, including institutional shareholders.”
“A case in point would be the support of the Public Investment Corporation, the largest pension fund in South Africa on the back of our migration. The PIC now owns 25% of the Company and we are particularly proud to have them as shareholders,” commented Sandile Nomvete, Chairman.
Delta International offers investors direct participation in select high-growth economies on the continent. Apart from a hard currency hedge, investors benefit from a nominal tax on distributions, as opposed to the usually higher income tax as the distribution received is a foreign dividend.
The Company’s assets in Mozambique include the Hollard Building, Vodacom Building, Zimpeto Square and the Anadarko Building which was the first asset introduced into the portfolio. All the assets are based in Maputo and are in line with the investment criteria of sustainable, US$ based income from high quality tenants.
The company successfully raised US$39 million on 22 April 2015 through a private placement, issuing 26 354 444 new ordinary shares. The proceeds of the capital raise were deployed to fund the acquisition of the Vodacom Building, Zimpeto Square and to retire a portion of debt associated with the completed acquisition of the Hollard Building.
“Mozambique offers investors access to a growing economy, underpinned by resources and tourism, which is attracting an increasing number of multinational companies which bodes well for the property market, especially in the office sector in high-growth nodes such as Maputo,” commented Nomvete.
Anfa Place mall in Casablanca, Morocco, a 30 711 m2 GLA shopping centre located in the prestigious suburb of Anfa in Casablanca, Morocco, is anchored by the likes of Carrefour, Marks & Spencer, H&M and Virgin Megastore and should see potential uplift in the footfall with the much anticipated opening of the adjacent Four Season’s hotel in September 2015.
The Company is committed to progressively increasing its portfolio and continues to evaluate potential opportunities consistent with its strategy and investment principles. In the short‐term the company will continue focusing on increasing its investments in Mozambique and Morocco. Delta in general does not assume development or leasing risk and will not acquire incomplete developments with insecure income streams or vacant buildings with no immediate lease or income generating ability.
“Delta International’s first phase growth strategy is to establish critical mass in Mozambique and Morocco. Thereafter the Fund plans to prudently expand over time into other high growth markets,” concluded Nomvete.