aREIT lists as the first leasehold property REIT on the JSE’s Main Board

The Johannesburg Stock Exchange.

Shares in aReit Prop Limited, a property group holding leasehold properties with a focus on the hospitality and medical sectors, have started trading on the Johannesburg Stock Exchange’s Main Board.

According to aReit, potential investors will benefit from strategic investments it intends to make over the next 3 years in the health and leisure sectors as it capitalises on the recovery of these segments in the aftermath of the pandemic.

We are excited to be listing the first leasehold property REIT on the Main Board of the JSE with our quality tenants, long-term leases and secure, predictable returns for investors. This is the first step in our journey to roll out this new yet simple concept for South Africa to expand our portfolio both locally and internationally”, the company said.

Trading under the JSE code ‘APO’ with AcaciaCap Advisors as its sponsor, aReit revealed that it has secured long-term leases with strong tenants, mostly with rentals being the higher of the minimum rental or 25% of turnover, which will support its bid to take advantage of the recovery in the health and hospitality industries, with plans to look for other long-term lease opportunities and assets, both locally and internationally.

Valdene Reddy, JSE’s Director of Capital Markets, welcomed aReit’s listing, the second for 2022, adding that it comes at a time when South Africa’s economy, and the property sector, in particular, are gradually recovering from the Covid-19 impact.  

We are pleased to welcome aReit to the JSE and are excited by the growth opportunities their listing brings for the company. The hospitality and health sectors are focus areas globally, and we look forward to the potential aReit enables for South Africa,” said Reddy.

aReit is the 39th company to list on the bourse’s REIT sector, which currently has a market capitalisation of +-R327 billion. 100 million aReit shares will be listed.