(Ecofin Agency) - Gyro Group, the company founded in April 2017 by the South African group Telkom to manage its real estate assets could become a Real Estate Investment Trust, South African media reveal citing Sipho Maseko (photo), the group’s managing director.  

"We’ve been looking at how we can unlock value because if you look at Telkom’s valuation, the property value is not reflected in our share price", says Mr. Maseko according to statements reported by the above-mentioned media. Indeed, in its financial report, Telkom reveals that the value of its real estate assets is ZAR26 billion, a volume that is not that far from its market capitalization which is ZAR27.4 billion.

With Gyro Group being fully owned by Telkom, its IPO would generate important cash for the operator and its shareholders.  

So, in view of the value of its assets, the managers expect that this would provide trading value while allowing the optimum development of the real estate segment.  

Idriss Linge