»
Nov 17, 2011:
Rebosis Property Fund, which on Monday posted a profit six months after listing, plans several big acquisitions in the coming months.
In an interview its CEO Sisa Ngebulana told Moneyweb the property fund is looking at massive acquisitions of properties which are set to enhance its portfolio. The acquisitions are expected to be revealed in four months’ time. The acquisitions will be funded through debt and equity. “We’ll issue more shares … we’ve got a big shareholder base, Ngebulana added. The fund has been on several road shows to garner support from various institutions. “They’re very excited about our pipeline …they see the pipeline as the biggest upside in the fund.”
The company says it is focusing on regional shopping centres or those in excess of 30 000m².
“It’s about dominating the property market, if you can’t have a mall that dominates, you are going to be under water very quickly because people are going to put similar malls next to you,” says Ngebulana. Adding that Rebosis has carved itself a niche by concentrating on gigantic malls like Gateway in Umhlanga, Menlyn in Pretoria and The Pavillion just outside Durban. durban, In the results presentation the fund said its strategy was to increase retail exposure and geographic diversity. On the commercial side it is aiming for 10 000m² with a single tenant blue chip or national government tenancy in prime CBD space. On the retail side it’s envisaging a minimum of 20 000m² in the form of a regional shopping centre with a 75% national tenant base in prime developing space.
“We’ve taken our time since our listing, but we don’t want to come to market all the time with small numbers. We’re going to come to market with big numbers.” Ngebulana declined to elaborate in line with the JSE’s trading rules.
The fund also aims to focus on developments near transport nodes, such as the Bloed Street Mall in Pretoria. This mall is situated on top of a bus and taxi rank. “Every commuter must walk the mall to get to their bus or taxi. If you can get a percentage of your shopper by getting your display right, pricing right and you provide good service, you will attract those people into your store,” says Ngebulana.
This way costs are saved in the capital outlay as parking garages become largely unnecessary. Ngebulana says larger shopping centres are also better equipped to weather economic storms. He says the company’s performance is in line with expectations and with targets set.
A statement said: “Forty percent of the portfolio is underpinned by secured long-term government leases, whilst the exposure to early stage regional shopping centres that are already trading well with a high growth rate, provides for significant upside potential.”
Asked about businesses benefiting from connections in government, Ngebulana replied: “We’re just not in that game. We don’t have to know politicians in our business. As a businessman you stay out of politics, it’s as simple as that. Finish and klaar.”
On prospects for 2012, the CEO said the company’s empowerment credentials stood it in good stead to acquire government-tenanted buildings. Rebosis has a one-year rental guarantee in place for the first year to 2012 for its Hemingways Mall and Mdantsane City in East London. The same applies for the Bloed Street Mall in Pretoria.