Heriot to list on AltX

17th July 2017 By: Anine Kilian - Contributing Editor Online

The JSE has granted real estate investment trust (Reit) Heriot a listing of all its issued ordinary shares in the diversified Reit’s sector on the AltX, effective July 24.

Heriot is a newly incorporated company and has been established for the purposes of creating a listed property fund that will acquire and develop properties either directly or through subsidiaries and joint ventures.

Heriot may also invest in listed property shares.

The Reit holds 20 industrial properties valued at R1.58-billion, as well as 12 retail centres with a gross lettable area of 119 981 m2 in central business districts, townships and rural areas that focus on the mass market.

The centres, valued at R2.09-billion, are anchored by a high percentage of national tenants with long-term leases and high trading densities that ensures the sustainability of Heriot’s cash flows.

The group’s investment strategy is to buy yield-enhancing assets that can offer consistent long-term rental income growth.

The company’s primary objective is to identify value-enhancing opportunities within the commercial, industrial and retail sectors in South Africa to create a stable and diverse portfolio of assets capable of generating secure and escalating free cash flows.

Heriot is confident that it will deliver a distribution of 72c a share for the financial year ending May 31, 2018.