Transcend aims to move to main board after sealing deal to double portfolio
The group hopes the migration will attract new investors and improve the liquidity of its shares
AltX-listed Transcend Residential Property Fund has signed a deal that will more than double the size of its portfolio and allow it to move to the JSE’s main board. Graduating to the country’s main exchange could help Transcend’s equity pricing “to right itself”, said CEO Rob Wesselo. The company’s illiquid shares – none of which changed hands on Monday despite the landlord announcing its biggest deal yet – have drifted slightly lower since its 2016 listing. “We see this as a big first step,” Wesselo said, adding that Transcend wanted “other typical shareholders” to back the group and trading liquidity to improve. Transcend said on Monday it would buy 2,159 residential units for R1.3bn from related parties. Spread across eight properties in Gauteng and the Western Cape, the units would be acquired at a weighted average yield of 9.9%.
The deal, 60% debt-funded, would boost Transcend’s portfolio to 4,691 units valued at R2.5bn. JSE-listed Emira Property Fund, which owns about 9%...
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