According to Investec Property Fund, the South African office and retail property market is gaining a second wind after years of unpleasantness.
Half of the firm’s 77 new leases signed with clients annually since March were in the sector, which created the opportunity to return after the settlement period, said co-CEO Andrew Uler in an interview.
The R22.1 billion real-estate investment fund in South Africa and Europe had previously spent 2021 selling retail assets to free up capital for high-demand segments such as warehousing and logistics, he said.
“Everything is definitely stable now in South Africa’s Pivot Hall, and it seems to be stable in our portfolio,” Uler said.
Investec Property Fund could dispose of its 65% stake in a pan-European logistics portfolio because property price increases and rent yields create an exit opportunity.
“There is an opportunity to exit and crystallize significant value for shareholders and then recapitalize that capital,” Uler said.
The fund reported an 11% year-over-year increase in revenue from March, as vacancies accounted for more than half. Property revenue rose to R1.1 billion, giving shareholders a 34% return. The fund expects net operating income to rise to 5% next year.
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