Shares in aReit Prop Limited (aReit), a property group holding leasehold properties with a focus on the hospitality and medical sector, started trading today on the Johannesburg Stock Exchange (JSE)’s Main Board, allowing investors to gain exposure to the property ​market without the normal exposure to property related expenses, risks and debt.

aReit is the 39th company to list on the bourse’s Real Estate Investment Trusts (REITs) sector, which currently has a market capitalisation of about R327 billion. According to aReit, potential investors will benefit from strategic investments it intends to make over the next three years in the health and leisure sectors as it capitalises on the recovery of this segment in the aftermath of the Covid-19 pandemic.  Other sectors will also be considered, with the main focus on strong tenants.

“We are excited to be listing the first leasehold property REIT on the Main Board of the JSE with our quality tenants, long term leases and secure, predictable returns for investors. This is the first step in our journey to role out this new yet simple concept for South Africa in order to expand our portfolio both locally and internationally”, the company said.

Trading under the JSE code APO with AcaciaCap Advisors as its sponsor, aReit revealed that it has secured long-term leases with strong tenants, mostly with rentals being the higher of the minimum rental or 25% of turnover, which will support its bid to take advantage of the recovery in the health and hospitality industries, and also plans to look for other long-term lease opportunities and assets, both locally and internationally. There are 100 million aREIT shares that will be listing.

Valdene Reddy, JSE’s Director of Capital Markets, welcomed aReit’s listing, the second for 2022, adding that it comes at a time when South Africa’s economy, and the property sector, in particular, are gradually recovering from the Covid-19 impact.  

“We are pleased to welcome aReit to the JSE and are excited by the growth opportunities their listing brings for the company. The hospitality and health sectors are focus areas globally, and we look forward to the potential aReit enables for South Africa,” says Reddy.

The listing of aReit increases the number of companies listed on the JSE to 318, with an overall market capitalisation of R21.6 trillion.