ApexHi plans growth spurt

Listed property loan stock company ApexHi Properties plans to grow its property portfolio by R500m-R700m in the 12 months to June next year.

ApexHi CEO Gerald Leissner said yesterday that the company would conclude property deals only if the acquisitions were revenue-enhancing.

Leissner said the company had increased its portfolio size by R1,5bn in the previous 12 months. ApexHi's property assets are worth about R5,5bn.

ApexHi would be looking at acquiring a spread of offices, retail and industrial properties, he said.

Over the past three years ApexHi has dramatically increased its percentage holding in retail property.

Retail property as a percentage of the company's total property portfolio was less than 10% when ApexHi was established in 2001.

It now makes up 43% of the company's portfolio, while offices make up 40% and industrial the balance.

"Whatever we are going to purchase now is not going to change that mix materially. We are looking for a spread of properties," said Leissner.

The company's low borrowing levels will also assist it in its acquisition drive.

Leissner said ApexHi generally liked to make use of a combination of issuing units and cash in its property deals.

But he said the company's borrowing facilities would enable it to acquire the majority of the R500m worth of properties for cash.

ApexHi's borrowings make up about 25% of total assets.

Leissner said about 20% of ApexHi's income came from various government and parastatal tenants.

"Government is regarded by everybody as an A-grade tenant," he said.

Source: eProp - www.eprop.co.za

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