LISTED property group Orion Real Estate will have more than R500m under management from 50 properties following the transfer of investments from the Gmeiner private portfolio, reflecting sound growth in the buoyant sector, says CEO Franz Gmeiner.
Formerly Alpina Investment Holdings, Orion is being restructured to accommodate the Orion Group and the struggling Alpina under a single banner.
In the six months to December the group reported a R3,9m profit (2006: R1,1m loss) in line with the first part of the restructuring, which saw the disposal of noncore properties and reduced overheads through the closure of their head office.
Gmeiner says the total consolidated portfolio consists of 44,18% industrial properties predominantly in well-established industrial areas such as City Deep, Selby, Marlboro, Laser Park and Isando. There are also landmark properties including the Isando-based SAB complex that boast a 2% vacancy level.
Across the board the company has lowered vacancy levels two percentage points to 5,5% while simultaneously raising rentals.
Office and industrial sectors continue performing strongly, facilitating tenant retention and lease renewals at escalated rates.
Within the recently acquired Nelspruit-based Promenade Centre, Orion is experiencing a waiting list for office and retail space.
This reflects the high demand for quality premises within the Mpumalanga capital and the possibility for rejuvenating other locations in the city.
“Orion continues growing and unlocking value in its property portfolio,” Gmeiner says.
In today’s market, sound properties in secondary locations offer higher yields than properties in central metropolitan locations.
They also hold greater potential for unlocking value via upgrades and renovation programmes, he says.
Orion has redeveloped apartments in the Edenvale-based Orion Centre for resale that include five new penthouse suites. The wholly sold Orion Towers apartments are being transferred to their owners.
Looking ahead, Gmeiner says further growth will be fuelled by new acquisitions, joint ventures and potential black economic empowerment deals.
Last year the company announced a R1bn retail and mixed-use waterfront development in Bethlehem that paved the way for an empowerment partnership.
