MASTER INVESTOR
MASTER INVESTOR
houses, as well as shopping centres focused on transportation nodes. They have substantial holdings in the offshore companies
Zidel attributes a lot of his success to timing.“ The strategy to go offshore paid off and has given our funds and SA investors rand hedge exposure NEPI has shown over 12 % per annum growth in Euros every year since listing, while the size and liquidity matter, and the inclusion into local and foreign Indexes give the shares a huge growth in price and brought in new investors. When REIT legislation eventually happened, it gave certainty on tax issues and attracted foreign investors.( SA is now 8th biggest REIT Industry in the world).”
About Fortress Fund Fortress Income Fund was listed on the JSE on 22nd October 2009. The company is an innovative hybrid property REIT, which has two separate listings. Fortress“ A” is for the conservative investor and pension fund which receives a fixed annual increase in distribution of the lower of 5 % or CPI. The share listed at R9 and is now approx R16.20 a share.
Fortress“ B” is for the more adventurous investor who backs management to out perform. Once the“ A” share distribution is paid all the increase in growth of distribution goes to the“ B” shareholders. The increase distribution for year ended 30 June 2016 was 95.28 %
The share price on listing seven years ago was R1.00 it is now approx R33 per share. It is a part of the Top 40 Index on JSE. Fortress“ B”
was The Sunday Times Top Company of 2015, having shown growth of over 75 % per annum for each of the last five years. At the end of 2015 Fortress Incorporated Capital Property Fund took its market capitalisation to just over R55 billion. They also recently made an offer to do the same with Lodestone.“ I am sure that going forward that with Mark Stevens the dynamic CEO and his team, Fortress will continue to grow.”
For the future Zidel has the following plans in store.“ We aim to keep investing in NEPI, Rockcastle, Greenbay and Hammerson giving rand hedges in dollars, Euros and pounds, and keep developing large logistics warehouse and leasing to blue chip tenants on long leases.” Fortress is about to start the development of a logistic park of approximately 370 000sq m on old Clairwood racetrack in KZN to top international standards and quality of approx.
TOP 5 INVESTMENT TIPS
1 Do research and stratergise- don’ t be afraid to change focus-“ adapt or die” 2 Property fundamentals are crucial, don’ t compromise! 3 Buy listed property both local and with offshore exposure. 4 Location, location, location 5 Don’ t shy away from partnerships.
Jeff Zidel President of the South African Council of Shopping Centres, speaks with Neale Petersen about local property investment in the latter half of 2016. Visit REIM TV for more in depth investment insights
10 OCTOBER 2016 SA Real Estate Investor www. reimag. co. za