Property loan stock company Alpina Investments said on Monday it was confident it would attract a lot of investors this year as because its various acquisitions had been structured to achieve a pretax yield of 14% in the next 12 months.
 
Niki Vontas, property consultant to Alpina, said projected forward yield was 30% to 40% higher than the rest of the listed property sector, where average yields were between 9,5% to 10,5%. One of the main reasons why the projected forward yield would be higher was that it would be supplemented by income derived from the property-related businesses.
 
Vontas said yields were expected to increase when the company's historical fixed-interest rate structures expired as from next year.
 
Alpina is busy bulking up its portfolio to the tune of about R600m, creating a medium-sized property vehicle. The company is poised to acquire properties and property-related businesses worth R438,03m from another property company, Daisy Street Investments 127.
 
Initially, Alpina was going to acquire R428m worth of property and property-related businesses, but Vontas said another property-related business had since been added to the portfolio. The acquisitions also include the entire property business of listed property loan stock firm Fairvest Property Holdings.
 
The deals are still subject to approval by from the Securities Exchange Regulations Panel, JSE Securities Exchange SA and the Competition Commission. Fairvest, which was previously tipped to be delisted, would now stay listed.
 
In October, last year, Vontas said Fairvest had received a proposal from a black economic empowerment consortium to transform it into a substantial property development and trading company. Further announcements are expected.