Heriot is a property holding and investment company that is invested in industrial, retail, residential, specialised and cproperties in South Africa. Heriot is the 11th company to list on the JSE this year.
Prejelin Naggan, Head of Primary Markets, at the JSE says the South African listed property sector has shown strong growth over the past few years as property funds with both local and foreign portfolios entered the market. “The introduction of REITs has helped to encourage new entrants into the listed space and also made it more attractive to local investors. The JSE is proud to welcome Heriot to the exchange to join the already diverse group of real estate companies represented here.”
The REIT structure, which was introduced on the JSE in 2013, gives property companies enhanced tax efficiency as tax is payable by the end investor. REITs must also pay at least 75% of their taxable earnings available for distribution out to investors as dividends, which gives investors certainty that net income will be paid out them.
Steven Herring, CEO of Heriot, says the listing creates a platform which the company can grow its portfolio and shareholder base. “After 20 years in the property market, I am looking forward to Heriot’s next chapter as a listed entity and to the wave of opportunities the listed space may bring us. We are ready to become a more corporate company, but at the same time Heriot will always retain its entrepreneurial spirit.”
Herring says the company also anticipates that listing will allow Heriot to attain better funding rates and wider access to the capital market. “We will continue to focus on Heriot’s key strengths to grow the company and unlock value for our shareholders. In particular, we have identified new sectors within the property market and we expect to grow our presence in these sectors.”
Heriot brings the number of companies listed on the Real Estate sector of the JSE to 61 and 37 of these companies are Real Estate Investment Trusts (REITs). The sector has a market capitalisation of over R813 billion and constitutes 5.8% of the JSE’s total market capitalisation.