Inkunzi Wealth set for JSE listing from its student accommodation fund

The Johannesburg Stock Exchange

The Johannesburg Stock Exchange (JSE) building in Sandton. It has operated as a market place for the trading of financial products for nearly 125 years.

JOHANNESBURG – Asset management firm Inkunzi Wealth Group is preparing to list a student housing property portfolio on the JSE next month.

The R2,25-billion portfolio will be the first investment fund in the country to focus purely on student accommodation.

Universities across the country are facing a huge accommodation shortfall with over 75-percent of university students being forced to find private accommodation.

Recent nationwide protests were spurred by tuition costs and academic exclusion.

But student accommodation has also been in the spotlight.

It’s estimated that the shortage of student beds across the country stands at more than 300 000.

READ: Squatting students: Thousands without accommodation

Asset management firm Inkunzi Wealth Group says its property portfolio wants to bridge the gap and create affordable, quality accommodation close to tertiary institutions.

“We decided to put together and assemble a portfolio of 12 assets. That’s going to be a dedicated student accommodation fund. That means all the assets are fully developed. They are already in practice for people…And what we are going to do is essentially address this issue about student accommodation. One of the key things that we have done is the quality and the type of assets that we enquire. It’s one thing having a bed to sleep in but the type of quality is important,” said Inkunzi Chief Executive and founding member, Kameel Kesjav.

Monthly rental costs will range between R1,800 and R6,000 for students.

Inkunzi Wealth Group now plans to list the R2,25-billion fund on the JSE later this year, the very first in a move they believe will attract huge investment

“We want to make sure that we empower as many people in the country as possible, who are interested in supporting us in this great venture. We want to make sure that charity begins at home,” said Inkunzi's Chief Investment Officer, Owen Nkomo.

In addition, the company will be allocating 30-percent of the fund’s shares to a broad-based black economic empowerment scheme for employees.