| Fri 29 Jun 2012, 9:01 | | VKE - Vukile Property Fund Limited - Vukile looks to next growth phase |
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VKE
VKE
VKE - Vukile Property Fund Limited - Vukile looks to next growth phase
Vukile Property Fund Limited
(Incorporated in the Republic of South Africa)
Registration number 2002/027194/06
ISIN: ZAE000056370
JSE Share code: VKE
NSX Share code: VKN
("Vukile" or "the company")
VUKILE LOOKS TO NEXT GROWTH PHASE
Johannesburg, 29 June 2012 - Property loan stock company Vukile, which increased
its full year distribution to unitholders by 6.1% for the year ended 31 March
2012, says the time is ripe to grow its portfolio far more aggressively than has
previously been the case.
In its integrated annual report, published today, chairman Anton Botha notes
that at the end of the year, Vukile`s portfolio consisted of 72 properties worth
over R6.1 billion. Its market capitalisation had grown four-fold from the date
of its listing eight years ago to over R5 billion at the end of the financial
year and is now R6.7 billion. "This has laid the foundation for our next growth
phase, which is to be more acquisitive and proactive in nature, while not
diluting our focus from growing distributions to our unitholders," he says.
Botha says Vukile is committed to remaining a diversified fund but with a
special emphasis on the retail sector and will be exploring acquisitions of
retail centres and joint venture development opportunities that would complement
the company`s existing portfolio make-up. "We continue to believe in the
strength and growth of retail in the emerging market - a view supported by the
performance of our current retail assets - and will therefore primarily
concentrate our expansion in this market segment." He says market conditions
have also become ripe for a consolidation of the listed property sector.
In the same report, chief executive Laurence Rapp says the company has not
excluded corporate activity as a means to grow the portfolio. "Given our
increased scale and improved liquidity, we are well positioned to take advantage
of any value-adding corporate transaction opportunity that may arise.
Rapp says that Vukile`s equity raise, carried out as part of the company`s R1.5
billion property acquisition from Sanlam, had resulted in Vukile welcoming many
new unitholders. Additionally, Sanlam`s decreased stake in Vukile to less than
6%, through inter alia, the sale of 70.2 million linked units to the Public
Investment Corporation, has increased the company`s free float weighting from
50% to 100%. "We are now one of the most liquid stocks in the listed property
sector," says Rapp.
Looking ahead, Vukile expects trading conditions to continue to be difficult in
the year ahead. "Based on management`s experience over the past few months it
appears that the sector may have bottomed out and while it is still too early to
predict a recovery, it is encouraging to note that vacancy levels across the
portfolio are beginning to improve. The portfolio has performed well, despite
these challenging conditions, and we are confident that we should again deliver
reasonable growth in distributions in the coming year," Botha says.
Unitholders are advised that the integrated annual report for the year ended 31
March 2011, will be posted on 29 June 2012. The annual financial statements
contained in the integrated annual report are identical to the audited results
of the company which were released on SENS on Tuesday, 29 May 2012.
Notice is hereby given that the annual general meeting of Vukile will be held in
the Vukile boardroom, First Floor, Meersig 1 Building, Constantia Boulevard,
Constantia Kloof, 1709, Gauteng, at 09:00 on Friday 31 August 2012.
The notice of annual general meeting is issued with the integrated annual
report, which contains the annual financial statements of Vukile for the year
ended 31 March 2012.
For further information contact Laurence Rapp, CEO Vukile Property Fund Limited,
on 083 266 3011.
Issued by du Plessis Associates on behalf of Vukile Property Fund Limited.
dPA contact Helen McKane Tel : +27 11 728 4701,Fax: +27 11 728 2547, Mobile: 082
330 2034 or e-mail: vukile@dpapr.com
website: www.vukile.co.za
29 June 2012
JSE sponsor: Java Capital
NSX sponsor: IJG Securities
Date: 29/06/2012 09:01:01 Produced by the JSE SENS Department.
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