Indluplace Properties' solid results driven by acquisitions and listing

Posted On Wednesday, 11 November 2015 10:12 Published by
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Indluplace Properties’s revenue has increased from R37,4 million (30 September 2014) to R157,8 million (30 September 2015).

Gerald Leissner

This increase is as a result of the acquisitions concluded during the previous financial year, together with the partial impact of acquisitions concluded during this period.

Carel de Wit, FD of Indluplace commented: “We increased our portfolio to 95 residential buildings as at 30 September 2015 compared to 30 a year ago by acquiring yield enhancing properties in the housing market across quality properties.

“Our intention is to grow the portfolio aggressively and enhance the geographical spread across South Africa. Our model of outsourcing the property management function to experienced local expertise has worked well.”

Rental income reported was greater than the forecast at the time of listing resulting from the settlement of the dispute with Monash University. The University occupied three complexes comprising 333 units. The one complex comprising 97 units was handed back to Indluplace in July 2015. This complex was subsequently fully let at the end of September. Monash will hand back occupation of the other two complexes at the end of November 2015 after which the letting of the remaining units will commence.

Acquisitions to the value of R489 million were concluded after year-end consisting of portfolios acquired from Connaught Properties and Prime Residential. These acquisition will raise the Company’s portfolio by 28% to R2,2 billion. The acquired portfolios comprise nine high rise buildings with a total of 1 189 residential units (Connaught) and three low rise suburban properties with 166 residential units (Prime).

“We aim to position ourselves as an exit for developers and owners of residential stock or portfolios. This places us in a unique position going forward, enabling us to grow our portfolio with good quality stock at the right price.

“We are confident that we will be able to increase our current pipeline of approximately R900 million over the coming months to double the portfolio within the first full financial year,” said De Wit.  

The revised distribution forecast to September 2016 increased to 92,55 cents per share, up over 10% from 83,79 cents per share as per the prospectus. 

Indluplace is South Africa’s first focussed residential property fund with a substantial residential property portfolio currently mainly in Gauteng. The intention of Indluplace is to acquire yield enhancing properties and portfolios that provide income from day one across quality properties with a national geographical spread where proven demand exists. This will generally be in larger urban centres close to work opportunities and transport infrastructure.

Last modified on Wednesday, 11 November 2015 11:04

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