Growing its portfolio of income-producing commercial properties, Freedom Property Fund has commenced its next phase of development, introducing over a dozen new units at Steelpoort Industrial Park in Limpopo.
This is one of several projects identified in Freedom’s prelisting statement that the fund has already initiated and achieved significant progress.
Freedom listed on the JSE Main Board on 12 June 2014, introducing unique property capital growth opportunity for investors, coming from the fund’s diverse and growing portfolio, which includes residential, commercial and industrial property assets of R1,56 billion.
Its assets comprise income-yielding properties and developments complemented by a secured pipeline of around R3 billion of commercial property developments and R7 billion residential rental and sale property developments, as well as a long-term development pipeline in decentralised areas throughout South Africa.
Unlocking its first industrial property development as a listed company, Freedom is progressing apace with its next phase of development at Steelpoort Industrial Park in Limpopo.
Steelpoort Industrial Park already comprises 20,000sqm of fully-let mini- midi and maxi units. It also includes a further available bulk of 28,000sqm that is serviced and ready for Freedom to develop.
Tyrone Govender, CEO of Freedom Property Fund, says: “Steelpoort Industrial Park is well established as a prime commercial location in the area, especially for businesses that deliver goods and services to the surrounding mining sector. Most mines in this area are still early in their productive lifecycles. Our well-located industrial park supporting these mines will continue to be sought after for many years.”
Responding to the healthy demand for space at this growing industrial park, Freedom began developing a further six units, which average 500sqm each, prior to its listing. All are now complete, fully let and will be income producing from 1 August 2014. Freedom has developed these units at a yield in excess of 13%.
Moreover, it has given the green light to develop further seven units of 1,100sqm each. These modern industrial facilities are being phased in two units at a time. The first couple have already been signed up, with the market expressing keen interest for the remaining five units.
In fact, the prevailing positive demand for space at Steelpoort Industrial Park is so strong that the developer has provided Freedom with a rental guarantee for the first year after each unit is complete. These units will yield in excess of 13% for Freedom.
With the completed units, Steelpoort Industrial Park is expected to be valued at approximately R620 million. Govender points out the park will also include residential development of 5,000 opportunities in the longer term.
“By developing a substantial portfolio of income-generating assets, and securing reasonably-priced debt funding to do this, Freedom will continue to unlock sustainable value and growth prospects for shareholders by capitalising on the largely ungeared value in our property portfolio,” says Govender.