Property investor Heriot revels at JSE listing
Heriot, which has invested in industrial, retail, residential, specialised and commercial properties in South Africa, is the 11th company to list on the JSE this year.
Prejelin Naggan, Head of Primary Markets, at the JSE says the South African listed property sector has shown strong growth over the past few years as property funds with both local and foreign portfolios entered the market.
Heriot brings the number of companies listed on the Real Estate sector of the JSE to 61 and 37 of these companies are Real Estate Investment Trusts (REITs).
The sector has a market capitalisation of over R813 billion and constitutes 5.8% of the JSE’s total market capitalisation
The introduction of REITs is set to encourage new entrants into the listed space and made it more attractive to local investors.
“The JSE is proud to welcome Heriot to the exchange to join the already diverse group of real estate companies represented here,” Nagaan said.
The REIT structure, which was introduced on the JSE in 2013, gives property companies enhanced tax efficiency as tax is payable by the end investor.
REITs must also pay at least 75 percent of their taxable earnings available for distribution out to investors as dividends.
Steven Herring, Chief Executive Officer of Heriot, said the listing created a platform which the company can grow its portfolio and shareholder base.
He said after 20 years in the property market, the company was looking forward to its next chapter as a listed entity and to the wave of opportunities the listed space might bring.
“We are ready to become a more corporate company but at the same time Heriot will always retain its entrepreneurial spirit,” Herrign said.
– CAJ News
