ApexHi Properties Limited has concluded leasing deals worth R288-million, covering a total of 210,570m² of space, in the six months to end December 2004.

Of the 350,000m² of space to come up for renewal during the 2004/2005 financial year, leases on 203,964m² expired in the first six months to 31 December 2004.

Renewals were achieved on 153,293 m² (75% of the leases that expired during the period) valued at R201,446,201, and new deals were achieved on 57,013m² valued at R86,514,918. As a result the total vacancy on the portfolio has been reduced by 5,112m² to 249,459m² or 12,7% of the portfolio.

ApexHi director, Deon Feinblum, says that letting activity has been extremely positive in the first six months of the year.  “The Broll Property Group, which acts on behalf of ApexHi, has already concluded leases for 60% of our full year’s target.

The percentage of leases being renewed on expiry is up on the past few years, and rentals on renewal are not falling as we anticipated,” he says.

Feinblum says the buoyant letting activity is important to ApexHi, as its growth is increasingly coming from the escalations in the core portfolio. “To date, our growth has been primarily through acquisitions of new properties.

We have a portfolio of some 247 buildings worth R3,3-billion and in the current strong property market where it is becoming increasingly more difficult to acquire revenue-enhancing properties, we are expecting the growth through acquisitions to start slowing down. However, the income from our core portfolio is expected to grow by some 7% per annum,” he says.

This letting performance means ApexHi is on track to deliver consistent returns to unit holders at year end.