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CONSTRUCTION WORLD
AUGUST
2017
12
PROPERTY
Accelerate reported year-on-year distribution growth of 7,3%,
translating into a distribution per share of 57,57 cents, up from
53,67 cents year-on-year.
Accelerate’s property portfolio has grown to R11,6-billion,
resulting in a 38% increase for the comparative period. The
increase is largely due to Accelerate’s initial offshore investment
of R1,25-billion, the acquisition of approximately 50% of the iconic
Portside tower in Cape Town for R755-million, Eden Meander retail
centre in George and the Citibank building in Sandton.
“Notwithstanding the tough current macroeconomic
environment, we remained focused on active asset management.
Our aim is to continually improve the quality of our portfolio
through quality acquisitions and the sale of non-core properties.
“This year was a very important year for Accelerate. We
diversified our portfolio offshore by creating a bespoke strategy
to invest in long-term single tenant net leased properties that
are strategic to blue-chip multinational or large regional tenants
in Central and Eastern Europe. On the local front, we have also
made excellent progress with the Fourways Mall redevelopment
and continued with our drive for quality,” said Andrew Costa, chief
operating officer of Accelerate Property Fund.
Our nodal strategy remains our key local differentiating factor.
The Company focuses on nodes that are deemed to have good
economic fundamentals and superior growth potential.
The strategy allows for economies of scales within these
nodes where any investment in improving specific properties,
infrastructure or services is to the benefit of other assets owned
by the Company in the same area. The constant focus on tenant
optimisation and letting activity resulted in vacancies (net of
structural vacancies) marginally decreasing to 6,9% from 7,1%
whilst the weighted average lease period improved from 5,1 to
5,6 years during the reporting period. The company’s cost-to-
income ratio of 16,9% is in line with the market.
The Fourways Mall redevelopment is well underway having
opened Bounce and the food court during the reporting period.
Infrastructure upgrades in excess of R280-million are underway,
including a flyover from Witkoppen Road directly into the new
multi-level parking.
“The completed Fourways super-regional mall will anchor the
Fourways node, attracting top-quality tenants in the retail and
office segments,” said Costa.
In February 2017 Accelerate announced the acquisition of
the Murray & Roberts building in the Cape Town Foreshore which
together with Accelerate’s existing properties in the node, lends
itself to a large scale commercial and residential development
opportunity. In addition, the Fund has acquired a Sandton office
building anchored by Citibank. Both these acquisitions are
strategic and represent Accelerate’s focus to acquire quality
enhancing properties.
Aptly named, The Neighbourhood, this
close-knit estate is set to be one of the few
secure residential developments in the area,
offering buyers a choice of upmarket stand-
alone houses, cluster-style living or luxury
loft apartments.
Complementing the residential
development will be a new village square,
complete with a vibrant shopping walkway
and plaza, which will offer the community
the best of leisurely living, with plenty of
options to shop, socialise, dine and unwind.
The Neighbourhood is nestled beneath
Linksfield Ridge, and lies adjacent to
the Huddle Park precinct, a 220-hectare
greenbelt that is home to a public golf
course and other leisure amenities.
Investec Property has carefully crafted
a design for their approximately 53-hectare
estate that complements the existing land
and facilities, while delivering a village-style
development to meet the needs of families
in the area.
“Sensitive to the surrounding area, The
Neighbourhood development will take up
just a small portion of the natural parkland
area that it is situated on, in fact the estate
has been designed to fully maximise the
beautiful views of the Huddle Golf Course
and greenways. Adding to this, 40% of the
new development will be open spaces –
parks, gardens, walkways, tree-lined roads
and a retail square. The concept is not
about maximising the development, but
providing a best-use solution.
“We have taken the time to understand
the existing vegetation and our
development will be thoughtfully built
around the existing topography,” says
Nicolas Kyriacos, head of mixed use
developments at Investec Property.
Experienced South African architects,
Boogertman + Partners and landscape
architects, Landmark Studios, have created
a design that resonates with the history
and architecture of the area, while ensuring
that the large majority of existing trees and
vegetation remain intact. New indigenous
plant life will be incorporated into the
landscaping and lush green spaces will be a
feature of the estate.
“With regards to the landscaping
considerations, all the trees were surveyed,
and a master plan was created so that
the development maximises the number
of existing trees that could be retained.
While this isn’t the most economical way to
develop, these mature trees add value and
richness to The Neighbourhood,
which is important to the overall concept
Historic Linksfield’s
NEW DEVELOPMENT
A new residential lifestyle development that celebrates the heritage
and natural environment of Johannesburg’s historic Linksfield area is
being launched by Investec Property.
Major exposure in Fourways
Accelerate Property Fund, the JSE listed REIT with
significant exposure in the dynamic Fourways node in
Johannesburg, recently announced solid Annual Results
for the year ended 31 March 2017.