Old Mutual Portfolio achieves 29% return for 2005

Posted On Wednesday, 15 March 2006 02:00 Published by
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A 29,4% return on the portfolio of retail, commercial and industrial properties managed by Old Mutual Properties for Old Mutual SA was achieved in 2005.

A 29,4% return on the portfolio of retail, commercial and industrial properties managed by Old Mutual Properties for Old Mutual SA was achieved in 2005.

In line with its strategic focus on asset management and asset gathering, Old Mutual Properties also increased assets under management to R9,1 billion as a result of growth from Old Mutual SA, Old Mutual Asset Management funds and the Old Mutual SA Quoted Property Fund unit trust.

Ben Kodisang, managing director of Old Mutual Properties, said the 29,4% total return comprised 20,87% capital growth and 8,51% income return, way ahead of inflation which averaged 5% for the year.

“The retail segment of the portfolio produced a 32,9% total return, followed by industrial at 25,5% and offices at 17,1%.

“The total returns achieved by the top five shopping centres in the portfolio – Gateway Theatre of Shopping, Umhalnga, Cavendish Square, Cape Town, Menlyn Park, Pretoria, Riverside Mall, Nelspruit and Vincent Park, East London – ranged from 44,5% to 29,3%.

“Old Mutual Properties’ role is to generate stellar property investment returns for our clients and Old Mutual’s policyholders, who to a large extent depend on the outcome of our labour for their survival and livelihood. This represents significant real growth in the pockets of our policyholders. The outstanding performance of our listed securities funds continued in 2005, with the SA Quoted Property Fund topping R1 billion. “

Kodisang said that although significant changes took place to position the company as leader in the provision of property managed solutions, stakeholders continued to rate Old Mutual Properties at the 75% satisfaction level, ahead of plan.

“As a result of the restructuring, the company now provides property managed solutions in three primary areas – asset management, development and management.

“The asset management unit is responsible for attracting, investing and managing capital, developing products, acquiring and selling properties, and research.

“The development unit’s activities span site evaluation and selection, project concepts and management, project finance and developments for end-users and investors.

“The property management unit handles management of shopping centres as well as commercial and industrial premises, leasing, maintenance and value-adding services. “


ISSUED FOR Old Mutual Properties
BY Michael Kerkhoff & Associates
INQUIRIES  Ben Kodisang (021) 530 4500
  Michael Kerkhoff (021) 424 5280


Publisher: Old Mutual Properties
Source: Old Mutual Properties

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