Tuesday, 13 December 2016 11:59

Texton tackles volatility in UK leases

Written by
Rate this item
(0 votes)

Single-tenanted long-term leases in the UK should protect Texton Property Fund from volatility in the region.

 Nic_Morris_Texton_Property_Fund_CEO

Single-tenanted long-term leases in the UK should protect Texton Property Fund from volatility in the region, Nic Morris, the group’s new CEO, said on Thursday.

Texton has diversified into the UK over the past few years. Its strategy is to sign up as many large single tenants on long leases as it can. This protects it from the short-term weak economic growth or decreasing valuations in UK assets because of events related to Brexit.

Investors would be able to receive consistent pounddenominated income streams from Texton’s UK assets and regular dividend growth from its South African properties.

Texton’s portfolio is geographically split by value between the UK, accounting for about 40%, and SA, with about 60%.

“Our strategy aims to provide investors with secure and robust income streams and attractive dividend yields through exposure to solid long-term leases with excellent tenants.

“Texton remains focused on increasing the average value of its properties through enhancing its core portfolio and disposing of smaller noncore assets.

“Texton will continue with the reduction in government exposure and secondary office exposure with a view to moving closer to a balanced portfolio across the UK and SA.”

Morris joined Texton as chief operating officer in January and was promoted to MD in September. He took over as CEO after the resignation of Angelique de Rauville. He was CEO of Arch Property Fund, after leading the real estate advisory team at Rand Merchant Bank. He is a certified chartered accountant and holds a BCom from Stellenbosch University and a BCom (Hons) in accounting from the University of KwaZulu-Natal. He completed a postgraduate diploma in real estate at the University of Cape Town in 2012. De Rauville remains a major shareholder in Texton.

The share of Texton’s portfolio that is invested in the UK 60%. The share of the property group’s portfolio that is invested in assets in SA.

source: Business Day

Last modified on Wednesday, 14 December 2016 12:09

Most Popular

Supporting solar energy solutions in South Africa

May 29, 2017
Parabolic Trough Solar Thermal Electric Power Plant
As part of the government’s Renewable Energy IPP Procurement Programme (REIPPP), that…

Echo Polska Properties completes acquisition of Warsaw retail development

Jun 01, 2017
Galeria Młociny
Echo Polska Properties, the dual JSE and LuxSE listed ‘pure Polish property play’…

Breathing new life into the CBD

May 29, 2017
Gustav Voigts Shopping Centre
Upmarket development in Windhoek’s central business district (CBD) is on the rise and has…

How junk status will affect the property market

Jun 08, 2017
Jacques van Embden
News broke last week that The Fitch ratings agency could affirm SA’s rand-denominated…

Green Building Council South Afica inspires South Africans to connect with nature on World Environment Day

May 30, 2017
Hotel Verde eco pool smaller
The Green Building Council SA (GBCSA) is celebrating World Environment Day on 5 June with…