Global Credit Ratings affirm stable Delta Property Fund outlook

Posted On Monday, 18 August 2014 17:04 Published by
Rate this item
(0 votes)

Global Credit Ratings affirmed its initial rating assigned to Delta Property Fund Limited of BBB+(ZA) and A2(ZA) in the long and short term respectively. The outlook was accorded as Stable.

 

Sandile Nomvete

This affirmation follows Delta's announcement in July 2013 that it has successfully entered the debt capital markets with the completion of its debut commercial paper issuance off a newly established R2 billion Domestic Medium Term Note Programme registered with the JSE.

Sandile Nomvete, Chief Executive of Delta commented: "The affirmation of our investment grade rating is underscored by the robust credit profile of our sovereign tenants, which makes up 64% of rentals. We are continuously considering various funding sources and ways to reduce the cost of capital as the portfolio is bedded down and cost structures optimised."

Bronwyn Corbett, Chief Financial and Chief Operating Officer added: "Since listing in 2012 we maintained our growth trajectory. Today the portfolio is valued at R7.3 billion, compared to R2.1 billion at listing. Going forward, our aim is to reduce the loan to value ratio to more comfortable levels in the medium term to provide us with headroom for further growth."

Eyal Shevel, Head of Corporate Ratings at Global Credit Ratings commented: "An improvement in the current rating will mainly emanate from the fund's proven ability to extract value from recent acquisitions. Moreover the fund will have to manage a reduction in the net LTV ratio to below 40%.

"We will also take a positive view on stable long term income and portfolio growth, coupled with enhanced portfolio quality and strong performance from non-government tenanted assets despite the challenging macro-economic environment."

Most Popular

Vukile transforms Pinetown’s first shopping centre, Pine Crest, into the first choice for shopping

Jul 25, 2019
 ITUMELNG MOTHIBELI
The renovated new Pine Crest launched today after an innovative R200m, 14-month…

Successful construction of CrestAquarium by Concor Buildings

Jul 25, 2019
 CRESTAQUARIUM 1
The indoor CrestAquarium at Cresta Shopping Centre allows shoppers to view more than 30…

The next wave of property development in Africa is coming

Jul 31, 2019
 NIYI ADELEYE
The past decade has seen South African property developers and investors forge their way…

Sandton Central’s private sector green building leadership contributes to better public spaces

Jul 25, 2019
 ELAINE JACK
From 2010, when Nedbank completed its headquarters on the corner of Rivonia Road and…

Centurion Mall, Redefine’s largest asset after comprehensive refurbishment

Jul 25, 2019
CENTURION MALL 1
The JSE-listed diversified real estate investment trust Redefine Properties today…

Please publish modules in offcanvas position.