Real Estate Investor Magazine South Africa February/March 2019 | Page 47

INVESTOR INTELLIGENCE
Accelerate Property
Fund – Vacancy
focus
Atlantic Leaf
Properties - releases
a quarterly update
Michael Georgiou, Chief
Executive
Accelerate Property Fund
listed on the main board of
the JSE in 2013. Accelerate
is a real estate investment
trust
(REIT)
offering
investors the opportunity to
share in a portfolio of well-
established, high-quality properties across South Africa and
Central and Eastern Europe.
Accelerate’s portfolio is independently valued at R12.6
billion with a gross lettable area of 621 120 m2. The Fund
is strategically focused on the Fourways Precinct, Charles
Crescent in Kramerville, Sandton, as well as Foreshore in
Cape Town, where it enjoys nodal dominance.
The vacancy rate is 7.8% with a weighted average lease
term of 5.4 years across the portfolio. 64.8% of revenue is
derived from large national tenants split across retail (67.1%),
commercial offices (27.8%) and industrial assets (5.1%). CEO Paul Leaf-Wright
Atlantic
Leaf
was
founded in 2013 and is a
Mauritian incorporated real
estate company that focuses
on high quality commercial
property assets that provide
suitable hard currency
returns to investors through
income yields as well as the prospect of capital appreciation.
The company is dual listed on the Stock Exchange of Mauritius
Limited and on the Main Board of the JSE in South Africa.
Since listing in March 2014, Atlantic Leaf has grown its
AUM to £370 million. Atlantic Leaf ’s core geographical
target is the United Kingdom, while investments in other
developed markets may be considered when appropriate.
The company targets industrial and commercial property
assets in strategic business areas with sustainable income flows
from high occupancy levels, long leases and strong corporate
tenants. 
• Fourways super regional mall to open on 25 April 2019 • Total Assets Under Management £370 million, up 6.7%
from Q3 2017
Results
• Fourways area growing at over 3% with super regional mall
to dominate northern Johannesburg retail market
• Unique and large format fashion and entertainment brands
introduced including internationally renowned Kidzania
• R1.7bn balance sheet optimisation and value extraction
initiatives well underway to reduce LTV to below 34%
• Net asset growth of 8.2% year on year
• 92% tenant retention despite recessionary environment
• 96% hedged against increasing interest rates
• Offshore blue-chip single tenant portfolio predominantly
in Austria performing above expectations
• Distribution per share of 27,26021 cents (2017: 28,77713
cents) in line with guidance
Quarterly earnings in line with expectations
• Total Rental Revenue £20.1 million, up 11.1% from Q3
2017
• Adjusted EPS of 2.22 pence per share, up 2.3% from Q3
2017
Commenting on the results CEO Paul Leaf-Wright said,
“The period under review has been challenging given the
volatility currently being experienced in UK property market,
especially given Brexit, the pressure on the retail property
sector, and generally a difficult market to predict as far as
other factors such as interest rates and capitalisation rates on
properties are concerned.”
The redomicile of the Company to Jersey and the conversion
to a UK REIT, subject to final required approvals, will be
affected on 1 March 2019 to coincide with the start of the
Company’s 2020 financial year.   A final announcement on the
conversion will be made in due course.
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