CAPE TOWN — Property loan stock company Growthpoint Properties will seek to double the industrial portion of its portfolio to about 15% by value as part of a R4bn acquisition programme, CEO Norbert Sasse said yesterday.

Commenting during a tour of the group’s newly-acquired Cape properties, Sasse said this was consistent with a long-term strategy to diversify Growthpoint’s portfolio both geographically and sectorally, and to switch from listed stocks to relatively cheaper fixed property investments.

"Our vision is to be the first property company to be included in the Top 40 Index," Sasse says.

"That will mean increasing our market capitalisation from R6,5bn at present to about R8,5bn, which at a 50% gearing ratio means we need to add assets worth about R4bn to our portfolio."

Growthpoint recently acquired Tresso Trading’s portfolio of 48 mainly Cape properties for R800m, boosting the value of its Cape portfolio to R1,1bn out of a total asset value of R9,1bn.

Among the properties it now owns are the Investec building on the Cape Town Foreshore, Newlands on Main, Longbeach Mall in Noordhoek, Constantia Village shopping centre and the N1 private hospital.

The Growthpoint portfolio, management of which is out sourced to Investec Property Group, currently comprises about R4,3bn of office space, R4,2bn of retail space and just R600m worth of industrial property by asset value.

Sasse says he is actively pursuing opportunities to expand the industrial side of the portfolio, especially in the Cape, where vacancy levels have plunged from 10%-11% to 2%-3% in recent years and green field sites are at a premium.

"SA’s industrial property sector has changed tremendously over the past year or two. The in dustrial part of our portfolio is showing substantial growth in both capital and rental, and office space is going the same way."

Sasse says the planned securitisation of Growthpoint’s debt is forging ahead, with rating agency Fitch working with management on structuring the package.

The paper will be issued in tranches, the goal being to ensure that at least 70% is AAA rated. The first issue, worth between R750m and R1,2bn, is expected in Sept ember or October.