By Nick Wilson

Listed property loan stock company ApexHi Properties had acquired two residential property portfolios for R246m, it said on Tuesday.

ApexHi CEO Gerald Leissner said the properties would be part of ApexHi’s portfolio, but managed by residential specialists Aengus Property Holdings.

Leissner said that ApexHi had a residential joint venture with Aengus, and profits from the properties were shared between the two companies.

“Some of the properties we will keep and some we will sell,” he said.

ApexHi said it would invest a further R91m in refurbishing the properties in a joint venture with Aengus.

The two portfolios are called Dunwell and Softstone .

The R115m Dunwell portfolio consists of 15 residential properties in Braamfontein, Johannesburg. A further R78m would be incurred in refurbishing costs.

The R131m Softsone portfolio consists of nine residential properties in Hospital Hill, Hillbrow, Braamfontein, Parktown and Berea, Johannesburg.

ApexHi said R11m would be incurred in refurbishing costs.

Leissner said ApexHi’s business had been operated on a “rental stream basis”.

He said the residential transaction was small relative to ApexHi’s overall R10bn property portfolio which included offices, retail and industrial properties.

He said ApexHi’s overall property portfolio had a low-risk profile. There was high demand for residential property. “There will be an opportunity to make some development profits.”