New JSE listing: Stor-Age
As more funds continue to list on the Johannesburg Stock Exchange (JSE), so Stor-Age (a 10-year-old company which offers self-storage facilities to individuals and small businesses) plans to follow suit.
In November this year, Stor-Age will join the more than R500-billion real estate sector already on the bourse, so giving investors access to the first storage real estate investment trust (Reit).
Stor-Age CEO, Gavin Lucas (pictured), is confident that the company's differentiators and strong market fundamentals will bode well for teak-up of the offers.
Lucas said in a statement:
"The majority of our listing portfolio assets are considered 'Mature', meaning over 80% tenancy. This stabilises our portfolio, minimises investor risk and provides visibility of earnings . This is in contrast to local peers with facilities in far-out industrial areas."
Over the last two years, the real-estate sector has seen something of a listing boom, with 33 companies having listed. Once Stor-Age lists, it will bring the total number of real-estate listings on the JSE this year to five, with a further two listings pending for mid-October. Other entities that listed include Capital & Regional, Indluplace Properties, Lodestone Properties, and New Frontier Properties.
Stor-Age will bring 23 properties (worth R1.3 billion) to market, and expects a market capitalisation of R1.2 billion upon listing. The share offer comprises two parts reaching both institutions and private investors. Stor-Age is looking to raise around R700 million from institutional investors and has set aside another R15 million for staff, customers and suppliers.