Andrew Konig, chief executive of Redefine, said on Monday that three major developments stood out in the pipeline.
They were the R998 million expansion of Centurion Mall, where Redefine had already invested R415 million but would be spending a further R583 million; the R712 million Rosebank Link office development in Johannesburg; and the development of a R60 million industrial print park in Cornubia in KwaZulu-Natal for Hirt & Carter.
Konig said it was also trying to simplify and clean up Redefine Properties’ corporate structure and was in the process of selling off listed securities it owned, which would raise about R4 billion.
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He said it had sold its minority shareholdings in listed Emira and Arrowhead and were also looking to sell shareholdings in Delta Properties, International Hotel Group and Mara Delta and Oanda Wings in Nigeria.
Konig said Redefine Properties had previously indicated it was not interested in investing in Africa apart from South Africa. Almost 20percent by value of Redefine Properties’ total property portfolio is currently offshore and it owns property assets in the UK, Germany, Poland and Australia.
Konig said it was not planning to expand the countries in which it had investments, but would increase its offshore exposure if attractive opportunities became available.
“There are still significant opportunities in Poland and we are actively seeking opportunities to expand in that market,” he said.
Konig said it did not have a specific target for Redefine Properties’ offshore exposure, but would be comfortable if this increased to 25 percent to 30 percent over time and as opportunities presented themselves. But Konig stressed that the exchange rate could play a role in the company’s offshore exposure.
“Should the rand significantly weaken, suddenly our 19-odd percent [offshore exposure] could become 25 percent from exchange rate movements,” he said.
Redefine Properties on Monday reported a 7.5 percent growth in distributions to 44.82 cents in the six months to February from 41.70c in the previous corresponding period.
The overall occupancy of the portfolio was 94.5 percent, with improved utility management and recoveries increasing the property portfolio’s operating margin to 82.6 percent.
Shares in Redefine Properties rose 0.83 percent on the JSE yesterday to close at R10.95.