Thesis (MBA)--Stellenbosch University, 2002. / ENGLISH ABSTRACT: Owners of directly held, large commercial properties mostly face problems
regarding liquidity and sometimes higher-risk exposure due to large properties
dominating their property portfolio.
• Exit vehicles in the listed property sector on the JSE are gaining momentum but
are, however, still facing the negative impact of overall bear market conditions.
• An exit vehicle in the bond market can serve as an alternative, where a Limited
Purpose Company/Special Purpose Vehicle (SPV) acquires a rental income stream
from a portfolio of properties and issues bonds. The funds raised from bond
investors, who focus on the credit rating of the income stream and not the
properties, are then used to acquire the property assets.
• Current market conditions, favour an asset-backed securitisation of property
leases. Low interest rates and other factors in the current market, as discussed in
this document, ensure lower costs of debt and easier access to capital when funds
are raised on the bond market, relative to the equity markets, with highly geared
structures not necessarily causing a negative impact on the credit rating (80% -
90% gearing possible with A - AA local credit rating).
• Usually a promoter, a Merchant Bank and a few institutions/ pension funds are
involved. Example: Institution X will be requested to take up an equity stake in
the fund by selling some properties or stakes therein (Institution X buildings) and
receiving payment in a combination of cash, junior bonds and equity. The benefits
to Institution X are discussed on page 39. / AFRIKAANSE OPSOMMING: Eienaars van groot kommersiële eiendomme wat direk besit word, ondervind
normaalweg probleme rakende likiditeit en verhoogde risiko a.g.v. die groot
eiendomme wat hulle portefeulje domineer.
• JEB (Johannesburgse Aandelebeurs) genoteerde maatskappye, as uitgangstrategie
vir die verkoop van eiendom, is 'n oplossing, maar beer mark
toestande verlaag die moontlikheid.
• 'n Maatskappy genoteer op BESA (Effektemark) kan as uitgang- strategie
dien, waar die voormelde maatskappy met beperkte aanspreeklikheid die
huurinkomstestroom van 'n portefeulje van eiendom aankoop en effekte uitgee
vir die finansiering van die transaksie. Die beleggers wie die effekte koop,
fokus op die kredietgradering van die effekte en nie die eiendom as
onderliggende bate nie.
• Huidige mark omstandighede verbeter die moontlikheid van 'n bategesekureerde
sekuritusasie van eiendomshuurkontrakte. Lae rentekoerse en
ander faktore wat in hierdie dokument bespreek word, verseker laer koste van
kapitaal en makliker toegang tot fondse relatief tot die aandelemarkte. Hoë
hefboom-finansiering is moontlik sonder te groot impak op die
kredietgradering. (A-AA kredietgradering moontlik met 80%-90% skuld)
• Normaalweg is 'n promoter, 'n beleggingsbank en 'n paar institusies/
pensioenfondse betrokke. Bv. Institusie X word versoek om aandeelhouding
op te neem in 'n maatskappy deur eiendomme te verkoop aan die voormelde
maatskappy en betaling te ontvang in die vorm van 'n kombinasie van kontant,
junior effekte en aandele. Die voordele vir Institusie X word bepreek op bl. 39
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/52705 |
| Date | 12 1900 |
| Creators | Venter, Martin |
| Contributors | Du P Smith, J., Stellenbosch University. Faculty of Economic & Management Sciences. Graduate School of Business. |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | English |
| Type | Thesis |
| Format | 44 p. |
| Rights | Stellenbosch University |
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