Metboard continues to grow its quality portfolio

Posted On Thursday, 12 May 2005 02:00 Published by eProp Commercial Property News
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Metboard intends to expand its portfolio by actively seeking industrial clients that wish to grow and that require a focused and established property fund to assist them in meeting their property needs.

Estienne De KlerkMetboard Properties Limited (“Metboard”) is South Africa’s largest industrial property loan stock company listed on the Johannesburg Securities Exchange of South Africa (“JSE”). The company intends to expand its portfolio by actively seeking industrial clients that wish to grow and that require a focused and established property fund to assist them in meeting their property needs.

Metboard’s executive director, Estienne de Klerk, believes that Metboard will grow by building strong and sustainable relationships with its clients and delivering them quality, strategically located properties that will add value to their businesses.
 
This approach has resulted in Metboard’s quality portfolio continuing to show sustainable growth, both in value and yields. Vacancies in the Metboard portfolio are at an all time low of 2.4% of the companies 1.5 million square metres of industrial space.

The shortage of quality industrial properties has resulted in a ‘sellers market’, according to Estienne and as a result, Metboard constantly reassesses the performance of individual properties. Metboard has disposed of non-core, under-performing properties where appropriate thus taking advantage of the sellers market.

“The benefit of leasing an industrial property versus owning it, includes reduced risk, increased tax efficiency and time and cost savings on building maintenance,” explained de Klerk.

Given the above, industrial companies should be assessing the feasibility of “sale and lease back” transactions that would allow them to realise the capital they have tied into the properties they own. The capital realised could potentially be utilised in their businesses to earn them a better return and simultaneously reduce their exposure to “non-core” assets.

Metboard is primarily focused on acquiring investment properties but has also identified the opportunity to undertake specific client-driven developments as a strategic objective towards expanding it’s portfolio of properties.

“This kind of development is mutually beneficial with the client receiving a custom-built premises to its specifications and Metboard ensuring a sustainable investment-class property asset. The client has the added benefit of Metboard providing its expertise on location, design and other elements relating to the development, without taking on any risk as an owner-developer.” explained de Klerk.

Metboard will also be enhancing its portfolio with suitable new acquisitions presently being assessed.

The recent half-percentage point reduction in interest rates bodes well for Metboard in that the positive impact it will have on industry will create a better economic climate for its clients.

Metboard’s linked unit price registered a record high of R4.20 on Monday 18 April.

Last modified on Friday, 09 May 2014 14:46

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