New African Properties, a property outfit headed by┬áone of the country’s most┬áprolific┬átycoons, John Mynhardt is to stage the largest variable property loan stock┬áoutside government on the Botswana Stock Exchange (BSE).
New African Property will have a market capitalization of P 1.3 billion and is headed to the BSE in the next three weeks.
This will be the Mynhardt’s┬ásecond┬álisting┬áafter Furnmart┬á — the┬á furniture and appliances┬á company that trades in four┬á southern African countries.
New African Properties said it is offering┬á to sell 75 million linked shares at┬á 200 thebe┬á per share and subsequent listing of┬á 604 397 124┬á linked unit shares on the BSE. New African Property portfolio is made up of┬á Cash Bazaar Holdings┬á assets, which are sprawled between Botswana and Namibia.
The assets include Riverwalk┬á Mall,┬á Riverwalk Plaza, Kagiso Mall, Kasane Mall, Mafenyatala Mall in Molepolole among┬á the 65 properties┬á own by the company. Some of the┬á property┬á largely made up by shopping centers┬á is based┬á outside Botswana.
┬áThey have 440 leases over the 65 properties in question and the bulk of them is made up of┬ásome of the Cash Bazaar Holdings subsidiaries, such as CB Stores, Topline, Sole Shoes, Taku Taku, Furnmart and Home Corp.
┬áAnd some of their big tenants included some retail chain stores and commercial banks that give confidence on the steady┬á flow of income.
New African Properties’ Managing Director, Tobias Mynhardt,┬ásays┬á the company has already raised┬á P 130 million through private placement and aims to raise a further P20 million┬áfrom the listing.
They are putting P 400 million aside that will be geared towards acquisitions.
“We are already┬á talking to some of the people,” Mynhardt said, referring to the acquisition, adding that part of the money that they raise will clear bank loans┬áand be ploughed towards acquisitions.
“The listing┬áallows the┬ápublic to invest in a fund that owns the underlying properties that represents the bulk of property portfolio that Cash Bazaar Holdings has built up over the years. It means that the business will be able to┬á source funds, both equity and debt, to enable it to compete with its peers and grow,” he added.
The listing of New Properties Africa will bring the total number of property loan stocks to five after Letole La Rona, Prime Time, RDPC and Turnstar.
New African Properties portfolio┬áis┬áheavily skewed towards the shopping┬ácenters but supported by office space and┬áwarehouses.