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Key Points
- Heriot REIT increased its stake in JSE-listed Texton Property Limited to 22.77%, bringing its total investment to $15.36 million.
- The move aligns with Heriot REIT’s focus on properties with strong financial footing and sustainable profitability.
- With over 19 industrial properties valued at nearly $310 million, Heriot REIT’s expanded Texton stake reflects its commitment to increasing its portfolio investment.
Heriot REIT, a Gauteng-based property holding and investment giant led by South African real estate tycoon Steven Herring, has through its wholly owned subsidiary Thibault REIT Limited increased its stake in Texton Property Limited, bringing the market value of its shares in the JSE-listed firm above $15 million.The move, disclosed in a regulatory filing on Friday, Feb. 14, 2025, reflects the strategic focus of Heriot REIT, a Real Estate Investment Trust (REIT) listed on the JSE, on properties with high investment yields and long-term growth prospects.
Heriot REIT’s investment focus
The latest increase raises Heriot REIT’s stake in Texton from 22.12 to 22.77 percent, now valued at R282.35 million ($15.36 million). For the distinguished property holding company managing R5.67 billion ($309.12 million) in total assets, the decision underscores its strategy of backing businesses with solid financial footing and sustainable profitability.
By deepening its investment in Texton, Heriot REIT signals confidence in the company’s direction. The move is consistent with its primary objective of exploring strategic growth opportunities and streamlining its asset base by acquiring high-yielding properties in its target markets.
Regulatory compliance and portfolio transformation
In line with JSE Limited Listings Requirements, the property investment fund, Texton Property Limited confirmed receipt of formal notification of the increased stake. The necessary disclosures have been filed with the Takeover Regulation Panel.
The latest increase in ownership follows Heriot’s previous acquisitions, where its stake in Texton rose from 22.12 percent (as of Dec. 23, 2024) to 22.77 percent (as of Feb. 12, 2025). The company cited an administrative delay in submitting the formal notification.
In June 2024, Heriot REIT finalized a R1.1 billion ($59.88 million) share exchange agreement, securing 100 percent ownership of Thibault REIT Limited and transforming it into a wholly owned subsidiary. The acquisition, effective June 28, 2024, led to Thibault’s delisting from the Cape Town Stock Exchange, marking a significant milestone in Heriot’s strategic expansion.
Through Thibault, Heriot initially acquired a 19.33 percent stake in Texton Property Limited, which has now increased to 22.77 percent, further reinforcing its footprint in South Africa’s real estate sector and solidifying its position as a leading property investor.
Heriot REIT’s expanding influence
Under the leadership of Steven Herring, who owns 89.07 percent of Heriot REIT, valued at R4.56 billion ($248.6 million), the company has grown from a small 50-square-meter office in 1998 to a significant player in South Africa's property investment sector.
With a market capitalization of R5.12 billion ($278.73 million), Heriot's strategic acquisitions since 2003 have allowed it to expand its portfolio to include over 19 industrial properties. Today, the company's total assets are valued at R12.17 billion ($663.31 million), further solidifying its position as a key player in the industry.
The increased stake in Texton strengthens Heriot REIT’s presence in South Africa’s commercial real estate market and fits well with its ongoing strategy of investing in high-growth properties. As the company continues to expand and diversify its portfolio, this highlights its commitment to financial stability, sustainable growth, and creating lasting value across the country.
