ApexHi Properties Limited and Isivuno Apex Properties have further strengthened their partnership by agreeing that Isivuno Apex Properties will handle all government leasing activity in the ApexHi property portfolio on a national basis.
ApexHi originally entered into a partnership with Isivuno in mid 2006 to strategically manage a R400-million portfolio of commercial properties in Pretoria, where government is the main tenant. This portfolio is set to reach R761-million by mid 2007 following ApexHi’s recent acquisitions.
ApexHi MD David Rice says the partnership has been successful and is reaping rewards for both parties, with leases on more than 70,000m2 negotiated with government since the agreement was signed.
“Following the success to date and in line with the initial agreements, Isivuno’s responsibility has been extended to handle all government lease negotiations across the entire portfolio and across all tiers of government and its agencies, in all provinces. All leases will be signed by ApexHi or Isivuno,” he says.
Government currently occupies more than 400,000m2 of the ApexHi office portfolio, which accounts for 20% of ApexHi’s annual rental income. The agreement includes a profit share on income derived from rentals and the sale of any of these properties.
Isivuno director Dumisani Nene says the partnership is important to Isivuno in that it creates value for all parties concerned and gives Isivuno a unique opportunity to derive real benefits of ownership without exposure to the risk associated with the ownership of assets.
This partnership has seen commitment of over R50-million in upgrades and maintenance as well as financial benefits for both ApexHi and Isivuno.
