Heartwood Properties lists over 100 million shares on the new 4 Africa Exchange

Heartwood Properties lists over 100 million shares on the new 4 Africa Exchange

Cape Town, 3 August 2018, Heartwood Properties, born out of a successful joint venture between Gauteng property developers, Brydens Group and Montagu Property Group, is the first property company to list on the new 4 Africa Exchange (4AX). 

Designed for smaller businesses, the 4AX, launched in 2017, offers shareholders the same required governance and controls as other exchanges but at a very competitive price to issuers. It’s ideally suited to a company like Heartwood who will continually need to raise new capital for limited investors as they grow.

Heartwood focuses primarily on properties in the warehousing and commercial sectors. Most of the company’s tenants secure long leases and operate in the medium-to-large owner-managed sector. Owning assets worth about R120m, they have listed with just more than 100-million shares on the exchange at 59c per share, placing its market capitalisation at R59m. 

Heartwood CEO John Whall states: “As a development company wanting to expand to meet the market’s demands and keep abreast of trends, listing on the 4AX has been revolutionary. It is indeed an exciting time for us.”

Despite political instability and a fragile economy, South Africa’s commercial property sector has maintained its ability to stay ahead of inflation, beating other long-term investment returns making it a lucrative investment opportunity. 

Whall continues: “This type of investment suits high net worth individuals who are looking for fairly direct investment into quality property holdings and developments. 4 AX offers investors guaranteed good governance, transparency and all the controls that go with listed entities.”

Pallidus Capital acts as the ongoing external issuer agent of Heartwood Properties.

The two property groups share 30+ years of expertise between them offering green and sustainable developments from serviced co-working office space to innovative warehouse facilities. Heartwood’s first development as a joint venture began 2006 with Coldstream Office Park in Little Falls in Johannesburg. To date, their biggest development is Block A of the popular Willow Wood Office Park in Broadacres, Fourways completed in 2011. This was initially for The Business Centre, now Regus, who holds a 10 year lease. 

Heartwood Properties portfolio includes Block B and C of the Willow Wood Office Park – now nearing its conclusion with the fourth and final phase of Block D scheduled for completion in the first quarter of 2019. An office and warehouse for The Media Connection in Lanseria – completed in 2015. D4 Electricals’ new office, warehouse and assembly areas based in Lanseria – currently under construction, will be completed by September 2018. 

Future developments include an R80m warehouse and showroom in Northriding with one substantial tenant already secured, and a prime office development in Bryanston that will feature a rooftop venue looking back at the Sandton skyline.

Operating predominantly in the Gauteng region Heartwood is also busy expanding into the Cape Town area. 

For interested investors, please email Johan Fourie, Head of the Exchange Advisory Division at Palladius Capital on johan.fourie@pallidus.co.za, or contact Heartwood Properties by emailing CEO John Whall on john@heartwoodproperties.co.za. For more information please go to www.heartwoodproperties.co.za or call 021 035 1744. 

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