12 °c
London
Saturday, June 25, 2022
No Result
View All Result
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
No Result
View All Result
FurtherAfrica
No Result
View All Result
Home Africa

Mara Delta declares fifth consecutive US$ based income distribution

FurtherAfrica by FurtherAfrica
February 8, 2017
in Africa, Economy, FDI, Finance, Mauritius, Mozambique, Private Equity, Real Estate, Retail, South Africa
Reading Time: 3 mins read
1.1k 11
0
Share via QRWhatsappShare on FacebookShare on TwitterLinkedInPinteresteMail

Mara Delta, the only listed Africa focused distribution fund to offer international property investors direct access to immediate high growth opportunities on the African continent outside of South Africa, today reported strong interim financial results for the six months ended 31 December 2016.

“We are very pleased with declaring an interim dividend of 6.12 US$ cents per share despite some challenging geopolitical and economic headwinds. Our focus on counter party strength as well as our US dollar based leases has mitigated these risks to a large extent,” commented Bronwyn Corbett, Chief Executive.

Mara Delta’s declared interim dividend of 6.12 US$ cents per share is in line with management’s guidance of between 2% and 4% on the prior year’s total distribution.

“Our business model is based on structured investments underpinned by property assets. Debt is a major lever in this equation and the team successfully reduced our average weighted cost of capital by 0.42% to 5.80%, in line with our strategy to further diversify our sources of finance,” continued Corbett.

The Company is in the process of obtaining new funding mechanisms that are anticipated to further reduce the cost of debt during the financial period to June 2017. Mara Delta’s loan to value increased to 51.0% from 48.9% in the prior reporting period.

Mara Delta’s CEO Bronwyn Corbett
Mara Delta’s CEO Bronwyn Corbett

During the reporting period, Mara Delta increased its rental income by 24% from US$ 10.7 million to US$ 13.2 million on the back of asset acquisitions in the second half of the prior financial year. The Company currently has a yield accretive pipeline valued at US$ 244 million under transfer, which management says will increase revenue further as they come on stream.

These subsequent events include:

Acquisition of Tamassa Resort from Lux

  • A binding sale agreement with Néréide Limited (“Néréide”) a wholly-owned subsidiary of Lux Island Resorts Limited (“Lux”) for the acquisition of the Tamassa Resort in Mauritius for a total consideration of the Euro equivalent of US$ 40.0 million.

Subsequent to the sale, Tamassa Resort will be leased back to Néréide, guaranteed by Lux for an initial period of 10 years. The Euro denominated lease agreement will be on a triple net basis, meaning the tenant is responsible for the maintenance, the insurance and the utilities/municipal charges of the premises. The transaction is expected to be concluded in February 2017.

Acquisition of an interest in an entity owning three hotels in Mauritius from NMH, the holding company of Beachcomber

  • Negotiations with New Mauritius Hotels Limited (“NMH”) were concluded during the reporting period for the acquisition of a 44.4% interest in an entity owning three hotels in Mauritius, namely Le Victoria, Le Canonnier and Le Mauricia for a total consideration of € 50 million.

Similar to the Tamassa acquisition, the transaction will be on a sale and leaseback basis and will generate Euro denominated earnings from a 15-year triple net lease from NMH. Mara Delta will assume no operational risk.

Acquisition of Imperial Warehouse

  • Mara Delta entered into an agreement to acquire the Imperial Health Sciences logistics warehouse in Nairobi, Kenya. The facility will be leased back to Imperial on a ten year triple net basis, denominated in US$ and guaranteed by Imperial Holdings Limited. The transaction is expected to be concluded by March 2017.

Acquisition of Mall de Tete

  • On 7 December 2016 Mara Delta announced that it has concluded negotiations to acquire Mall de Tete, an 11 571 m2 newly opened retail centre located in Tete, Mozambique for a purchase consideration of US$ 24.9 million.

95% of the mall’s rentals are US dollar underpinned, with strong multi-national anchor tenants in the form of Shoprite and Choppies under long leases. Other major tenants include Pep, Jet, Woolworths, Studio 88 and KFC. The transaction further diversifies our portfolio in Mozambique and is in line with our strategy of acquiring high quality rural retail centres in under-serviced markets.

In addition to the above, the transfer of the Vale accommodation compound in Tete, Mozambique as well as the Cosmopolitan Mall in Lusaka, Zambia are pending subject to regulatory approvals.

Mara Delta is in the process of raising additional capital, following shareholder approval to allot and issue up to 125 513 408 additional ordinary shares at a minimum price of US$ 1.54 per share. 11 080 471 of this issue was successfully placed in December 2016. The proceeds of the capital raise will be utilised to secure the above acquisitions.

“Going forward, our focus will remain on expanding our asset base in current countries of operation as well as growing into targeted jurisdictions.

“Based on our first half performance, our current assets under transfer and our pipeline, we are confident that with continued shareholder support, we’ll reach our full year distribution forecast growth of 2% to 4%,” concluded Corbett.

Source: eProp

Related

Tags: Bronwyn CorbettImperial WarehouseInvestment FundLe CanonnierLe MauriciaLe VictoriaMall de TeteMara DeltaMauritiusMauritius Hotels LimitedMozambiqueNéréideNMHReal EstateSouth AfricaTamassa ResortTeteモザンビーク莫桑比克
ScanSendShare430Tweet269Share75Pin97Send
FurtherAfrica

FurtherAfrica

Founded in 2015 FurtherAfrica is an online platform centralising news and content focusing on the development and growth story of the African continent.

Related Posts

Tourism

Kenya and Mastercard signs MoU to boost tourism

by FurtherAfrica
June 24, 2022
Opinion: The consequences of Africa’s careless agricultural trade
Agriculture

Nigeria set for 1st National Agricultural Sample Census in decades

by Farmers Review Africa
June 24, 2022
Energy

The 10 most electrified countries in Africa

by Energy Capital & Power
June 24, 2022
Development

IMF discusses reforms and economic developments in Ethiopia

by Emmanuel Chilamphuma
June 24, 2022
Economy

Angola improves financial system

by FurtherAfrica
June 24, 2022
Angola Oil & Gas 2022
 
AFSIC 2022
 
Great Limpopo Transfrontier Park
 
MozParks

Translate this page

Read the Latest

Tourism

Kenya and Mastercard signs MoU to boost tourism

by FurtherAfrica
June 24, 2022
0

The MoU aims to drive the growth of tourism numbers in Kenya by leveraging various Mastercard channels, including its Priceless.com...

Read more
Opinion: The consequences of Africa’s careless agricultural trade

Nigeria set for 1st National Agricultural Sample Census in decades

June 24, 2022

The 10 most electrified countries in Africa

June 24, 2022

IMF discusses reforms and economic developments in Ethiopia

June 24, 2022

Angola improves financial system

June 24, 2022

FurtherAfrica Partners Network

The Exchange Club of Mozambique Taarifa Rwanda
TechGist Africa Africa Oil & Power Farmers Review Africa
Tanzania Invest Zambia Invest See Africa Today
Africa Global Funds Novafrica CrudeMix Africa
Harambee Africa Botswana unplugged Financial Insights Zambia
Digilogic Africa Web3Africa

Subscribe to FurtherAfrica

Enter your email address to receive new articles on your email.

Join 73,051 other subscribers.

FurtherAfrica

© 2021 FurtherMarkets

FurtherAfrica is a FurtherMarkets Limited platform

  • Countries
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

Follow Us

No Result
View All Result
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

© 2021 FurtherMarkets

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?
 

Loading Comments...