Johannesburg - Listed Western Cape-based property investment and development company Ingenuity Property Investments has grown the value of its portfolio to R4.2 billion following the recent acquisition of the Great Westerford office block in Newlands in Cape Town for R650 million.
The transfer of the 30 488 square metre Great Westerford office block was registered after the end of the first half of its financial year to February.
The value of its portfolio grew by 17.6 percent to R3.6bn in the six months to February from R3.06bn in the previous corresponding period.
It comprises 33 investment properties with a total value of R3.3bn and three land/development properties with a combined value of R212.9m.
These land/development properties comprised the Strand Street precinct development, “The Modern” project and the Tyger Valley project.
Acquisitions in the reporting period included Claremont Central for R85m, Toffee Lane in Claremont for R20m, State House in the Cape Town central business district for R35m, and the Ramsay Media Building in Pinelands for R25.5m.
Arnold Maresky, the chief executive of Ingenuity, said on Friday that the company had managed to grow its asset base significantly through strategic acquisitions and successful development initiatives.
“Despite tough market conditions, we have been able to acquire quality growth opportunities through sound and prudent business principles. The asset base has significant value-add opportunities that will deliver superior returns in the years to come,” he said.
Maresky added that the company had a significant development pipeline, including the 117 Strand Street precinct development, a mixed use scheme comprising 6 500m2 of retail, 39 phase one luxury apartments and 11 000m2 of premium grade offices.
He said this scheme would have an anticipated capital value of more than R550m when it was completed.
Maresky said the largest development scheme Ingenuity was currently planning was The Modern, a high-rise building adjacent to Portside that would comprise 33 000m2 of premium grade office space and a planned five-star hotel.
It had an anticipated capital value of more than R1.1bn, he said.
Maresky said Ingenuity was also working on at least five other development opportunities that were all at various stages in terms of obtaining planning approvals. He said they would be released as and when market opportunities presented themselves. “Its all about creating a long-term pipeline of developments.”
Unchanged
Maresky added that their strategy to build a quality Western Cape-based investment portfolio, while maximising the rate of return on their properties, remained unchanged.
Ingenuity on Friday reported unchanged headline earnings a share of 2.2c for the six months to February compared with the previous corresponding period.
Maresky said their focus was on maximising net asset value, which increased by 14 percent to 112c a share from 98c. Gross property income grew by 17 percent to R170m from R145m.
Net property income increased by 22 percent to R116.5m from R95.3m.
Maresky attributed this increase to rental escalations, the letting of vacant space and rentals earned on recently acquired investments and completed development properties.
Finance charges rose 30 percent to R87.1m from R66.8m.
The vacancy rate increased to 2.8 percent from 1.9 percent.
Shares in Ingenuity closed unchanged on Friday at 85c.
BUSINESS REPORT