JSE-listed Atlantic Leaf Properties has invested in a UK-based retail warehouse and industrial group in a move aimed at growing its 2018 earnings. The Mauritian-based retail estate company has acquired 45.03% of a portfolio in a joint venture with LMP Retail Warehouse JV Holdings, controlled by a London-listed real estate investment trust. Valued at £104.5m, the acquisition is fully leased by DFS Trading, the UK’s largest upholstered furniture manufacturer and retailer. The transaction is expected to generate a cash-on-cash return to Atlantic Leaf of 9.33%, increasing the current year’s forecast distribution of 9p per share to 9.1p per share. Atlantic Leaf has given guidance of growth of between 5% and 7% in dividends for the 2018-19 financial period, which, based on the current share price of about R17, translates to a forward yield of 9.5%. To fund the acquisition, Atlantic Leaf was embarking on an accelerated book-build to raise £30m by placing new shares on the JSE, which should...
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