South Africa: German Property Company Deutsche Konsum Heads for the JSE

analysis

Deutsche Konsum REIT-AG, a German property company with real estate investment trust (REIT) status in Germany, will debut on the JSE's main board on 8 March with a secondary listing. Not everyone is impressed.

Like Sirius Real Estate, Schroder Pan European, EPP, Hammerson and Globe Trade Centre, which all have secondary listings on the JSE, Deutsche Konsum REIT hopes to appeal to South African investors' appetite for offshore property investments.

The company will list in the Retail REITs sector of the JSE under the abbreviated name DKR. With a market capitalisation of about €557-million, the company invests in convenience retail properties in micro-locations in the central and regional areas of Germany outside of major cities and is listed on the Frankfurt Stock Exchange.

The DKR real estate portfolio will consist of 165 convenience retail properties with a market value of about €829-million.

The company was formed by Rolf Elgeti, a former London-based analyst who saw an opportunity in German real estate and moved there in the early 2000s.

The investment focus across DKR is on non-cyclical retail tenants, such as food retailers, retail warehouse stores, drugstores and the like which provide "essential" services and goods to consumers.

"This has made...

More From: Daily Maverick

Don't Miss

AllAfrica publishes around 800 reports a day from more than 130 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.