Trailblazer Mara Delta continues expansion on Africa continent

Posted On Thursday, 18 August 2016 21:30 Published by
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Mara Delta (formerly Delta Africa), the first multi-listed property fund to offer international property investors direct access to immediate high growth opportunities on the African continent outside of South Africa, announced that it is has earmarked a further US$ 110 million for investment into Mozambique.

Bronwyn_Corbett_Delta  

The US$ 110 million funding will be deployed in acquiring an additional four properties, as well as in the second stage development of Mara Delta’s Anadarko building in Mozambique’s capital city Maputo.   

The Company holds a diversified portfolio of strategically located commercial offices, corporate residential and light industrial assets as well as 50% interests in retail centres in that country.  

Since listing, Mara Delta significantly expanded its footprint across its earmarked “first wave” countries and holds assets such as Anfa Place Shopping Centre, the second largest retail centre in Casablanca, Morocco and a 50% interest in three dominant retail centres in Zambia, including Cosmopolitan Mall, a 25 900 m2 retail centre in Lusaka. Cosmopolitan Mall is still under transfer.  

Mara Delta’s portfolio further extends to commercial offices in Nigeria, a 50% interest in Buffalo Mall in Kenya and commercial offices as well as hospitality assets in Mauritius. Some of these assets are still under transfer.  

Commented Chief Executive Bronwyn Corbett: "Mara Delta is a total return play, and we offer investors a US dollar based return of between 3% and 6% per annum.   

“We are differentiated by the strong counterparties we transact with, the fact that the majority of leases are dollar based, and our ability to actively manage the portfolio.  

“In addition, we are strongly supported by our anchor shareholders, having raised more than USD 169.3 million since listing and benefit from development uplift as we have a right of first refusal on Abland’s developments on the continent.”  

Apart from a strategic vacancy at Anfa Place Shopping Centre, the overall portfolio vacancies are negligent. Mara Delta grew the portfolio under management from USD 210.4 million in June 2015 to USD 467.4 million – a growth of 122%, if the assets that are still under transfer are included. The portfolio’s overall gross lettable area commensurately increased by 123% from  59 053m2 to 131 419m2 over the same period.   

The nine acquisitions during the year offset geographical concentration risk, with 35% of the portfolio (by value) located in Mozambique, 25% in Morocco, 17% in Zambia, 23% in Nigeria, 1% in Kenya and 3% in Mauritius. The average property value is USD 36.0 million.   

With a management team with over 45 years combined African experience and relationships, as well as in-country asset and property management teams, the company is focused on creating significant shareholder value ensuring consistent growth on the African continent.   

“As a Pan-African property investment fund earning a US dollar based income, Mara Delta is attracting international investors looking for a currency hedge and also to participate in the high growth of emerging market economies.   

“Our immediate focus is to grow our footprint in current countries of operation, where we have established significant know-how and resources over the past number of years. In the medium term we are also considering expansion into East African markets where Real Estate Investment Trust regulations are being adopted,” concluded Corbett.   

Mara Delta is promoted by The Pivotal Fund Limited and Delta Property Fund Limited (both listed on the main board of the JSE) Mara, Carlisle, and Abland to source investment and development opportunities for the Company across the continent. Each provide an unrivalled blend of commercial experience and expertise in Africa.  

Mara Delta holds primary listings in Johannesburg and Mauritius and is domiciled in Mauritius. The Company expects to report its annual financial results for the year ended 30 June 2016 on 5 September 2016. 

Last modified on Saturday, 20 August 2016 01:09

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