Real Estate Investor Magazine South Africa July/August 2019 | Page 48

REITS
STOR-AGE PROPERTY BALWIN PROPERTIES
Annual results ending 31 March 2019 Year end results for 28 February 2019
Gavin Lucas, CEO of Stor-age Steve Brookes CEO of Balwin Properties
Stor-Age is South Africa’s only specialist self-storage REIT
on the JSE. The fast-growing self-storage sector is a niche
sub-sector of the broader commercial property market.
Stor-Age’s portfolio is differentiated by its properties’ high
visibility to passing traffic, easy access off busy arterial
routes and proximity to middle to upper income suburbs.
Stor-Age made a strategic entry into the UK self-storage
market in November 2017 and now owns the 6th largest UK
self-storage brand – Storage King. The portfolio across South
Africa and the United Kingdom comprises 74 properties (65
trading and 9 new developments), covering a GLA of 423
700m² and an estimated 60 000m² + of additional GLA to be
developed. The portfolio is concentrated in the four major
South African cities - Johannesburg, Cape Town, Pretoria
and Durban (49 properties), with the United Kingdom
portfolio having a bias towards the East and South East of
England (16 properties). Balwin Properties is a listed JSE company with more than
two decades’ experience in the South African property
industry. The property portfolio consists of sectional
title residential apartments in South Africa. Balwin is
a specialist, national large-scale residential property
developer that focuses on turnkey development and
sales of sectional-title apartments. Most of the sectional
title residential apartments are located in Johannesburg,
Tshwane, the Western Cape and KwaZulu-Natal. Most of
the developments owned by Balwin focus on providing a
‘lifestyle experience’ through a selection of entertainment,
leisure and sports facilities included restaurants, spas
and more. The end year results yielded that there is a
strong demand for the Balwin Property Limited lifestyle
apartments regardless of the economic turmoil and
consumer pressure.
Balwin Chief Executive, Steve Brookes comments: “We
are satisfied with the results and our continued focus on
new growth opportunities are expected to be a major
catalyst in increasing sales and profitability over the
medium term. During the year we successfully adapted
our sales offering to include more one- and two-bedroom
offerings, which supported sales.
Sectorial spread by value:
Commercial buildings: 3
Industrial buildings: 3
Retail properties: 3
Sectorial spread by value:
Focusing on Storage property.
Results highlights:
Number of properties in the fund: 74
Total asset value: R6-billion
Market capitalization: R5.4-billion
Net asset value per unit: R11.70
Gearing (%): 24.6% and 109.6% hedged on a net debt basis
GLA : 423 700m²
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JULY/AUGUST 2019 SA Real Estate Investor Magazine
Results highlights:
Number of properties in the fund: 23 developments,
currently active on 12 developments
Total asset value: R2.7-billion
Market capitalization: R1.3-billion
Net asset value per unit: Net assets R2.7-billion
Gearing (%): 23%, based on long term debt equity