ApexHi executive director Deon Feinblum says the Prima portfolio meets the company’s acquisition strategy criteria. The Prima portfolio comprises retail (57%), commercial (31%) and industrial (12%) properties, located in all nine provinces in South Africa, with very few located in the inner cities of the major metropolitan areas. The property portfolio is well let with predominantly national and regional A-grade tenants and a low vacancy of only 6% of the total GLA of 348,600m2.

“Most importantly, the portfolio does not dilute revenue, and it meets our objective of shifting the weighting of the portfolio to retail,” says Feinblum. The ApexHi portfolio is currently weighted in favour of the office sector, with 44% of the space in office, and 40% in retail. After the Prima acquisition, the office portfolio will reduce to 39%, and the retail component will increase to 43%. The vacancy will also reduce from 11% to 10%.

“The Prima retail portfolio complements our existing retail portfolio, which is predominantly convenience retail centres in suburban locations. The convenience retail centres are performing extremely well, with low vacancies, good tenants, and a high probability of retaining tenants, or replacing them easily,” says Feinblum.

The merger of the two portfolios will result in cost savings, as the Prima properties are located in areas where ApexHi already has offices and teams that manage the existing portfolio. “In addition, Broll Property Group currently manages both portfolios, which should ensure a smooth transition,” he says.