Real Estate Investor Magazine South Africa September 2014 | Page 47

STRATEGIES

BY JONATHAN S SMITH

Grow and Expand a Commercial
Property Portfolio
A defined investment approach
A suitable starting point in growing your portfolio
would be to extract as much value from your current
stock as possible. The considerations of exploiting
every internal (organic) and external opportunity for
growth within your existing portfolio is represented in
the table below.

VALUE EXTRACTION
Internal (Organic)

External

Improve gross income

Redevelop

Improve recoveries

Expand

Decrease expenses

Rezone

Improve tenant mix

Increase bulk

Improved lease structures

Extensive refurbishment

Improved letting strategies

New tenant mix

Renewal strategies

Recapitalise and refinance

Minor refurbi ͡