ApexHi Properties Limited has announced the acquisition of three buildings for a total consideration of R96,5 million. The properties, all of which focus on the retail sector, are located in Hammanskraal in Gauteng and Siyabuswa and Matsamo in Mpumalanga.

This acquisition is in line with ApexHi’s announcement in June last year that it intended to acquire R500-million worth of high yielding buildings over the next 12 months, and to increase the retail component of the portfolio.

Since June 2004, ApexHi has spent R363-million on acquisitions and sold a total of R104- million worth of properties. The latest acquisition brings the total number of properties in the portfolio to 247 and further diversifies the portfolio into the retail property market.

“We are continually pursuing a strategy to diversify into retail as it allows us to reduce the levels of risk associated with the portfolio as a whole,” says ApexHi chief executive Gerald Leissner.

“Added to this, retail property provides better rental growth opportunities, a higher proportion of A grade tenants, a high demand for space and obvious synergies with tenants across more than one location,” he says.

The properties were bought from a private seller with the purchase price settled 60% in cash and 40% units by the issue of A and B units at a combined price of R18,75. The buildings total 19,700m2 of retail space and have been purchased at a yield of12,3%. The buildings are 100% occupied with a strong tenant base made up of large nationally represented retailers like Pick ‘n Pay’s franchise Score, many of which have leases of up to 10 years.

“The acquisition of these three buildings brings the retail component of the portfolio to around 43%,” says Leissner.

ApexHi’s strategy remains to purchase yield-enhancing buildings with quality tenants.