ApexHi increased retail portfolio to take advantage of upbeat retail climate.

Posted On Wednesday, 07 December 2005 02:00 Published by
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ApexHi Properties Limited’s retail portfolio recently exceeded 1,000,000m2, which represents 43% of the total portfolio.

ApexHi Properties Limited’s retail portfolio recently exceeded 1,000,000m2, which represents 43% of the total portfolio. 

ApexHi director, Deon Feinblum, says the retail growth can be attributed to the overall growth of the ApexHi portfolio with the acquisition of a number of retail properties from Prima and 19 other properties. “The acquisitions form part of ApexHi’s objective to acquire an additional R500-million in properties in the financial year to end June 2006, and to increase its retail element,” he says.

Increased consumer spending, low interest rates and strong retailer results have contributed to ApexHi’s decision to purchase more retail properties. Vacancies in the retail portfolio are currently at a low 5,5%.

Feinblum says retail property currently provides better rental growth opportunities, a higher proportion of A-grade tenants and a high demand for space. “A number of ApexHi’s retail properties are located in secondary areas, which typically enjoy high yields, loyal tenants, low vacancies and good rentals and our urban centres such as Germiston Walk, Sammy Marks, Cleary Park, Shoprite Parow, Alberton Mall and Maynard Mall, among others, are attracting the middle market consumer,” he says.

In addition, there is a strong demand for retail space in outlying cities and towns and ApexHi anticipates good growth coming from rural areas where it is considering expansion opportunities.

Feinblum says the strong retailer interest in ApexHi’s developments has prompted the company to also look at expansion and refurbishment opportunities within the portfolio.

Some R50-million is being spent on upgrading Rivonia Square. This includes new mall finishes, ceilings, shop fronts, escalators and lighting. A number of A grade tenants, including Planet Fitness, will be added to the Rivonia Square tenant mix.

At Cleary Park Shopping Centre in Port Elizabeth, ApexHi spent some R2-million on tenant installation to accommodate a franchise Woolworths store that was vacated by Sales House a couple of months earlier. In addition, some R1,7-million was spent on new escalators and painting the interior of the mall. A further R45-million has been allocated for a major upgrade to the centre in the new year, which will include converting the old cinemas into retail space. New tenants, including Pick ‘n Pay, furniture outlets and other national retailers will be added to the mix. The renovations will deliver a yield of 12%, which is enhancing to the fund from day one.

Berea Centre in Durban will also be undergoing a major renovation in the order of R28-million. This will include a change in the tenant mix to include more fashion and the inclusion of banking facilities, and an upgrade to the flooring and lighting. The circulation and general flow within the centre will also be addressed with the new positioning of the escalators and stairs.

In Durban’s Argyle Centre, the retail interior and exterior of the building was recently upgraded for a Mr Price Home Store at a cost of R3,2-million. When the adjacent retail space became available, Mr Price Home created their first Mr Price Home Mega Store, incorporating their furniture range. The space was totally renovated and incorporated into the existing store to create the largest Mr Price Home outlet in South Africa measuring 2,650m2. The cost for the new renovated enlarged store and the total exterior revamp amounted to approximately R7-million, which included the exterior cladding of the property, upgrade of the air-conditioning system and interior refurbishments.


For further information, please contact:

Deon Feinblum
ApexHi Properties Limited
Tel: (011) 283 0150

Monica Meyer / Sandra Mason
Ogilvy Public Relations Worldwide / South Africa
Tel: (011) 880 2271
Date: 6 December 2005

Publisher: ApexHi
Source: ApexHi

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