CEO Bryan Smith, who resigned as CEO of listed property firm Alpina Investments at the end of March, says the share capital of the Adonis listed shell has been restructured and converted into a property loan stock company with linked units.

Adonis, which has been listed on the JSE for more than 20 years, held a shareholders? meeting two weeks ago where it was decided to sell the knitwear business to Adonis' former CEO.

"We've also changed the name of the company to Sizafika Property Investments," says Smith, and the new entity is busy acquiring a R800m property portfolio.

"We are focusing on B and C grade properties. About 50%-60% of the properties have some kind of redevelopment or enhancement possibility.

"We can double the size of one or two of the shopping centres we have bought."

Sizafika has an expected forward yield of 10,5% and Smith believes this compares favourably with the listed-property sector, which is trading on a yield of between 6% and 7% on average.

"We believe it is an attractive investment. There is nothing else on the JSE real estate sector that is giving a 10,5% yield."

Smith says the aim is to build up the property portfolio to R2bn over a year. The company will have an initial market capitalisation of about R800m.

Smith says rising land prices and building costs are making new developments considerably more expensive than the redevelopment and enhancement of existing property stock.