ApexHi Sells 104 Properties For R668-Million

Posted On Thursday, 06 March 2008 02:00 Published by eProp Commercial Property News
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ApexHi has sold 104 properties for R668-million to Dipula and Mergence, two BEE enterprise development property companies set up by Redefine Income Fund

Gerald LeissnerApexHi CEO Gerald Leissner says 66 properties were sold to Dipula for R334-milion at a yield of 10,1% and 38 properties to Mergence for R334-million at a yield of 9,8%

“The proceeds of the sale are being invested in refurbishment projects currently being undertaken by ApexHi worth more than R500-million, at yields of between 10% and 12%,” he says.

The number of properties in the portfolio will reduce by 25%, while the value of the property portfolio only reduces by 8%. This disposal should result in the improved management of the remaining portfolio.

“The transaction, which already has Competition Commission approval, is revenue enhancing for ApexHi and allows the company to take advantage of the satisfactory prices being achieved by the sale, to take a view on certain geographical nodes where ApexHi sees limited growth potential and to dispose of smaller buildings located in areas difficult to access.

“Our strategy is shifting as market conditions change, but our primary objective remains steadfast – to deliver growing income to our investors,” says Leissner.

 

Last modified on Tuesday, 22 April 2014 10:11

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