ApexHi Properties Limited’s strategy to invest in properties in secondary locations and smaller towns is paying off, due to a demand from both regional government and national retailers for quality space in these areas.

“A combination of greater demand, lower vacancies and higher average rentals in these outlying areas has supported our decision to invest in these locations. The trend towards decentralisation is less pronounced in smaller towns and cities, and the oversupply of space is simply not an issue. This results in far less pressure on rentals and a higher likelihood of renewals,” says ApexHi executive director Deon Feinblum.

In Mpumalanga, ApexHi has increased its portfolio to seven properties worth R156-million, following the recent acquisition of the Corbett portfolio from Century Retail Developments.  The Mpumalanga portfolio now comprises a gross lettable area of 52,000m2.

“We are only too happy to invest in these areas,” says Feinblum. “The property market here is strong and there is a robust demand for space. Vacancies in Mpumalanga, for example, are a low 3% and the resulting lower levels of risk associated with this has a direct bearing on the levels of risk for the portfolio as a whole. This is positive for our investors and is in line with our strategy to minimise risk and maintain liquidity levels for A and B units,” he says.

“The company’s strategy is built around unlocking value in properties that typically trade at significant discounts to comparable properties in prime locations. Unit holder value is protected by only acquiring revenue-enhancing properties that suit the investment profile of the portfolio,” he explains.

ApexHi’s Mpumalanga portfolio comprises two buildings in Witbank, two in Nelspruit, two in Hazyview and one building in Acornhoek.