Fairvest Limited announced more details of its R486 million strategic investment in Onepath Investments, an owner of digital infrastructure assets. Fairvest intends to utilise this investment to enhance its traditional retail properties synergistically, underscoring its credentials as an innovator and incubator for emerging property trends.

Fairvest CEO, Darren Wilder, said: “Globally, the returns from digital assets underpin some of the best-performing REITs, benefiting from growing structural demand that is not tied to economic cycles. In addition to attractive direct returns, Fairvest’s investment provides us with opportunities to enhance the lives of communities surrounding our retail centres, opens up new areas for expansion, and allows us to engage more deeply with communities, collect data, improve our marketing efforts, and drive foot traffic to our centres.”

South Africa continues to experience an enormous increase in demand for reliable and fast internet. Fibre is the best technology for consumers to access the internet, offering a combination of speed, reliability, and low latency. However, the cost of infrastructure has historically been a limiting factor. There are an estimated 10 to 15 million homes in South African townships, with households earning less than R5 000 per month, whose internet needs are currently inadequately serviced mainly by mobile operators through more expensive and less effective connectivity.

Fairvest’s investment in Onepath Investments (OPI) has funded the acquisition of fibre and related infrastructure leased to fibertime™, a proven fibre network operator and internet service provider, catering specifically to South Africa’s township market. fibertime™’s pay-as-you-go model offers fast fibre internet (uncapped 100Mbps) for only R5 per device per 24 hours and includes free equipment and installation.

Through this investment, Fairvest, through OPI, has enabled fibertime™ to provide fast, uncapped pay-as-you-go internet connectivity to lower LSM customers and communities, helping to unlock the untapped potential of South Africa’s township fibre market. fibertime™ aims to reduce costs, enabling more people to access the internet, and in the process, help entrepreneurs build large businesses that can create job opportunities for thousands of young people in townships. In the last three years, fibertime™ has successfully rolled out affordable fibre to more than 200 000 homes in townships and low-income areas nationwide in South Africa. 

Fairvest CEO, Darren Wilder, said: “The investment aligns closely with Fairvest's core retail strategy and target market of serving low-income, high-density communities in under-serviced areas. Serving communities with cost-effective digital access and data solutions is transformative in improving educational and employment outcomes, fostering entrepreneurship, creating business opportunities, and reducing income inequality. As these communities do better, it also enhances Fairvest's core retail market.”

Fairvest’s announcement follows its pre-close presentation last week, where the Company lifted its guidance for annual distribution growth per B share to above 10%. Previously, the Company guided for distribution growth of 8%-10%. The increase is due to a substantial improvement in property fundamentals with positive rental reversions of 5.0% (Mar ‘25: 4.3%), and a weighted average built-in escalation of 6.7% (Mar ‘25: 6.6%).

The Retail portfolio, representing 71% of the total portfolio by revenue, has demonstrated markedly lower vacancy, a strong improvement in rental reversions, and an increased WALE. The Office portfolio (18% of the total portfolio by revenue) was resilient, continuing to reduce vacancy and increase average gross rentals, while maintaining built-in escalations at 7%. Office WALE reduced modestly.

Industrial assets comprise 11% of the total portfolio. Vacancy increased in the industrial portfolio, primarily due to one property; however, the portfolio demonstrated notable improvements in rental reversion, average gross rental per square metre, and built-in escalations. Fairvest’s loan-to-value is expected to be below 30.0% by year-end.

Wilder ended: “Fairvest’s traditional portfolio is positioned for solid growth. Additionally, OPI’s digital infrastructure business is well-positioned for rapid expansion. fibertime™’s potential target market in South Africa is enormous, and to date, all acquisitions have outperformed the projected take-up levels. We are excited about this investment, which has such potential, and expect its strong performance to continue.”