Hermans & Roman Props to List On Jse

EmailEmail Print Share

26 Apr 2012

Hermans & Roman Properties Limited intends to make its debut listing on the Johannesburg Stock Exchange (JSE) main board on 11 May.

Hermans & Roman Properties Limited intends to make its debut listing on the Johannesburg Stock Exchange (JSE) main board on 11 May.

The company will raise capital through a private placement offered to qualifying investors only and there will not be an offer to the general public. 

Hermans & Roman Properties will offer approximately 203 929 395 linked units at an issue price of R10.00 per linked unit in order to raise gross proceeds of approximately R2.039 billion, representing the largest ever real estate initial public offering on the JSE.

It has received a binding commitment from the Public Investment Corporation in the amount of R262.4 million to subscribe for and purchase 12.5 percent of the total issued Linked Units.

The company will use the net proceeds of the offering to, inter alia, discharge a portion of the purchase consideration for the portfolio.

The remainder of the purchase price for the portfolio will be financed by bank debt, resulting in a loan-to-value ratio of approximately 49.4 percent. 

Company directors intend to employ leverage through debt financing to enhance unit holder returns with a target overall level of portfolio gearing of approximately 40 to 45 percent loan-to-value going forward.

Hermans & Roman Properties is a newly-established, internally-managed real estate company focused on investing in and managing retail and office properties in South Africa and selected sub-Saharan African countries.

On listing, it will own a portfolio of five large, high-quality, well-established retail and office properties and the property management business of Hermans & Roman Property Solutions (Proprietary) Limited.

Four of the five properties in the portfolio are located in South Africa (Johannesburg, Mossel Bay, Cape Town and Durban), and the fifth property is located in Lusaka, Zambia.

Leslie Hermans, chief executive officer of Hermans & Roman Properties, says they are acquiring high-quality, regionally-prominent and scarce prime properties including a substantial retail asset in Zambia, offering stable, defensive cash flows and value-creation potential.

The portfolio has a GLA of 251 277 square metre , of which 54.6 percent comprises retail space, 39.8 percent office space and 5.6 percent industrial space.

It has 477 tenants and an occupancy rate of 96.8 percent as at 31 January 2012, excluding head leases.

The directors of the company believe that the portfolio will generate a forward distribution yield of approximately 8.7 percent for the year ending 31 July 2013. 

It has been independently valued by Mills Fitchet Magnus Penny, as at 1 April 2012, at an aggregate market value of R3.636 billion.

Hermans & Roman Property Solutions was founded in 2002 by Leslie Hermans and Kevin Roman, the company’s executive director who collectively have 46 years of experience in asset management, property management and related property services in the South African real estate market.

This company manages assets estimated to be worth approximately R8.5 billion on behalf of 24 blue chip clients, according to directors.

Hermans explains that on listing, the company will focus on creating value for unit holders through the pro-active management of the properties.

“We have the market relationships to provide us with access to future deal flow and to enhance the value of the existing properties,” he adds. – Denise Mhlanga

About the Author
Denise Mhlanga

Denise Mhlanga

Property journalist at property24.com

Similar Articles

The Amdec Group handed over a cheque for R250k to the...

As tough economic conditions continue to take their toll...

Redefine Properties has been recognised at the Nkonki Top...

View all articles

Top Articles

Allergies are notorious for causing itchy eyes, sneezing...

Are you a sophisticated, modern professional ready to get...

For the shrewd investor, property provides one of the best...

View all articles
Top Articles
05 Feb 2016
Are you a sophisticated, modern professional ready to get a foothold in ...
05 Feb 2016
Comprising 2 000sqm and 29 shops, Blouberg Mall in Kareedouw in the East...
05 Feb 2016
Fine & Country Zimbabwe recently opened a new office in Borrowdale, an u...
05 Feb 2016
We think of lavish mansions adorning the mountain slopes, but you can st...
04 Feb 2016
Buying hotel apartments either to place in a rental pool or for personal...
Get the latest property news.
Select your options:

Your browser is out of date!

It looks like you are using an outdated version of Internet Explorer.

If you are using Internet Explorer 8 or higher, please verify that your Internet Explorer compatibility view settings are not enabled.

For the best browsing experience, update to the latest Version of Internet Explorer or try out Google Chrome or Mozilla Firefox.

Please contact our Property24 Support Team for further assistance. Tel. +27 (0)861 111 724