ApexHi plans growth spurt

Posted On Monday, 26 June 2006 02:00 Published by
Rate this item
(0 votes)
Listed property loan stock company plans to grow its property portfolio by R500m-R700m in the 12 months to June next year
By Nick Wilson

Listed property loan stock company ApexHi Properties plans to grow its property portfolio by R500m-R700m in the 12 months to June next year.

ApexHi CEO Gerald Leissner said yesterday that the company would conclude property deals only if the acquisitions were revenue-enhancing.

Leissner said the company had increased its portfolio size by R1,5bn in the previous 12 months. ApexHi's property assets are worth about R5,5bn.

ApexHi would be looking at acquiring a spread of offices, retail and industrial properties, he said.

Over the past three years ApexHi has dramatically increased its percentage holding in retail property.

Retail property as a percentage of the company's total property portfolio was less than 10% when ApexHi was established in 2001.

It now makes up 43% of the company's portfolio, while offices make up 40% and industrial the balance.

"Whatever we are going to purchase now is not going to change that mix materially. We are looking for a spread of properties," said Leissner.

The company's low borrowing levels will also assist it in its acquisition drive.

Leissner said ApexHi generally liked to make use of a combination of issuing units and cash in its property deals.

But he said the company's borrowing facilities would enable it to acquire the majority of the R500m worth of properties for cash.

ApexHi's borrowings make up about 25% of total assets.

Leissner said about 20% of ApexHi's income came from various government and parastatal tenants.

"Government is regarded by everybody as an A-grade tenant," he said.

Business Day
Publisher: I-Net Bridge
Source: I-Net Bridge

Most Popular

Property sales and development in Cape Town’s East City precinct healthy despite pandemic

Sep 01, 2020
Just nine months after launching to market, 63% of The Harri, a new 48-unit apartment…

Realising the potential of embattled Cape York

Sep 01, 2020
Previously owned by the Bank of Mozambique and abandoned, Cape York had been hijacked and…

Minister de Lille applauds Women in Construction at 2020 ERWIC Awards

Aug 31, 2020
Patricia De Lille
“Women in SA need to be given the opportunity to participate meaningfully, including in…

Business parks thrive as industrial tenants seek value

Sep 10, 2020
Rael Levitt
Business parks are coming into their own as a viable asset class in commercial real…

Creativity on the march across retail landscape

Sep 14, 2020
Belinda Clur MD
Creativity is on the march across the retail landscape as sector players get to grips…

Please publish modules in offcanvas position.