Newly listed on the AltX, Pembury Lifestyle Group’s (PLG) growth momentum gains further traction with the addition of the well-known Pembury Bryanston retirement lodge into their property portfolio. Shareholders have been advised that negotiations regarding the potential acquisition of additional retirement assets are on-going.
PLG has grown aggressively since the listing on the 31st March 2017. A recently concluded deal with the Black Manager’s Forum Investment company (BMFI) has primed the group for even more expansion. BMFI have taken significant c 15% stake and capitalised it with a further R55 million rand.
“We have delivered on our promise of opening three new school campuses this year in addition to another two campuses and six retirement lodges,” said CEO Andrew McLachlan, “and we’re excited by our explorations into retirement opportunities in KZN and the Cape Province which may bear fruit early next year.”
PLG group uniquely offers investors exposure to the education, retirement and property sectors.
“We were the first JSE AltX listed company to offer investors exposure to the retirement services sector and were followed by other players who obviously also recognise the potential of the retirement sector. Populations age and aging populations need care services; demand is quickly outstripping supply. We were the first to recognise this 18 years ago and to innovate by introducing a hospitality-based approach when offering services to a growing older population.”
In July this year, PLG acquired six retirement lodges, five in Gauteng and one in the Cape with 330 residents. Retirement has not been a traditional investment offering in South Africa; listed retirement business models in New Zealand and Australia have proven successful.
“A less tangible barrier to entry in the retirement sector is the importance of a strong, well established brand. Our competitive advantage in this sector is Pembury Lifestyle Group’s long, successful track record and excellent reputation. It is a sector where a strong, well established brand is key to attracting customers. Our brand and our communities are well established, well regarded and we experience strong organic growth as a result.”
“Both the education and retirement services sectors are underserviced markets, characterised by high barriers to entry and strong demand. They also both represent defensive plays in an uncertain political and economic environment,” explained McLachlan.
“The BMFI on-boarding has opened up many new opportunities for our group. It has strengthened our cashflow, providing more funds for property acquisition and capital expenditure. The BMFI have a long term view of their investment into the sectors and are a perfect match to our focus on sectors that are able to deliver social value to the community, in addition to capital growth.”
“The education sector always engenders interest, given the demand for an alternative to public education and the proven potential for exponential growth. Because we are currently the newest player in this sector, we are also the company most likely to unlock exponential growth for investors, some of whom have been playing a wait-and-see game before strategically investing.”
“During our first year, our expansion has been strong, but at the same time we’ve been able to lay a solid foundation. We’ve met our goals, formed strategically important new partnerships and have begun to benefit from the operational efficiencies that growth allows. I think that soon even wait-and-see investors will see the opportunity to jump on board. We are extremely excited about the opportunities that 2018 holds for our group.”