Fairvest, which recently merged with Arrowhead Properties, said yesterday that it was transitioning to a lower income group focused and convenience retail portfolio.
The group said in a pre-close update for the six months to March 31 that the merger had been implemented from January 31.
The results would include the results of old Fairvest for the 9 months to March 31, together with the results for Arrowhead for the 6 months to that date.
Fairvest now holds a portfolio of retail, office and industrial properties valued at R11.78 billion, comprising retail 67 percent, office 23 percent and industrial 10 percent.
Fairvest also holds a 61 percent interest in Indluplace Properties, which owns residential properties, and a 8.6 percent stake in Dipula Income Fund.
The operational performance to February 29 had been in line with communications to shareholders in relation to the merger.
The balance sheet remained stable, with the loan to value expected to be marginally below 40 percent.
Year-to-day Fairvest had disposed of three non-core assets valued at about R27.9m. Seven properties worth R112.8m million were expected to transfer before the end of the financial year. Overall portfolio vacancies would be below 8.5 percent by lettable area.
BUSINESS REPORT ONLINE