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

Getting into the buy-to-rent market without risking everything

May 03, 2017
Garry Palmer
A low growth economy and a rising cost of living has given property investors pause for…

Nedbank's Private Wealth is growing their presence in the Western Cape

Apr 25, 2017
Nedbank Private Wealth Logo
We are thrilled to announce that we have opened a new office in Stellenbosch.

Attacq appoints Jackie van Niekerk as Chief Operating Officer

May 05, 2017
Jackie van Niekerk md
Attacq announces the appointment of Jackie van Niekerk as the JSE listed capital growth…

Fourleaf Estate in PE is Africa's first residential development to receive full EDGE certification

May 05, 2017
Fourleaf Estate pic
The Green Building Council South Africa (GBCSA) has announced that the Fourleaf Estate…

Midrand residential property market continues to boil - Gauteng¹s fastest growing centre continues to attract investment

May 11, 2017
Waterfall Country Estate R9 95million
While house price growth in Gauteng has shown tentative signs of recovery in the last 12…