Gemgrow Properties Limited (formerly known as Synergy Income Fund Limited) is listed on the main board of the Johannesburg Stock Exchange in the "Diversified REITs" sector. Gemgrow was formed after the successful conclusion of a transaction between Vukile Property Fund, Cumulative Properties, Arrowhead Properties and Synergy Income Fund. The transaction included strategic asset exchanges, acquisitions and internalising the company's asset and property management functions.
Gemgrow is establishing a niche for itself in the listed property market, positioning itself as a high-yield, high-growth property fund. After finalising the transaction, the major shareholders are Arrowhead, holding 55,2% of Gemgrow's share capital and Vukile, holding 27,4%.
By leveraging its exclusively high-yielding and diversified portfolio of properties, Gemgrow aims to deliver increasing income returns to its shareholders.
The company's reconstituted portfolio is valued at over R4,3 billion and comprises 129 retail, office and industrial properties located across all provinces in South Africa. The combined gross lettable area (GLA) of the portfolio is approximately 692 700m2. To view Gemgrow's full schedule of properties, click here. Gemgrow's average annualised property yield for its reconstituted portfolio in 2016 was 10,6%. To manage and mitigate risk, the portfolio is diversified geographically, by sector and by tenant type. To view more detail of Gemgrow's portfolio, click here.
Gemgrow's earnings are distributed on a quarterly basis as a rental distribution. Shareholders are taxed in accordance with their specific tax status.
The "A" shares offer income-focused investors preferential rights to earnings, capped at a maximum growth of 5% per annum. Shareholders should note that for the income period ending 30 June 2018 and thereafter distributions in respect of "A" shares will be equal to the lesser of 5% and the most recent CPI figure, as per section 22.214.171.124 of Gemgrow's memorandum of incorporation (MOI). The balance of the company's earnings are attributed to the "B" shares. To view Gemgrow's MOI, click here. Gemgrow's financial year-end is 30 September. To view Gemgrow's share price information, click here.