Real Estate Investor Magazine South Africa September 2018 | Page 39

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LIBERTY TWO DEGREES
Liberty Two Degrees bolsters its asset management team Liberty Two Degrees (“ L2D ”), a premier South African retail focused REIT , has recently added to its team of vastly experienced asset managers through the appointment of Carmen Collison while Nikiwe Mkhabela , Brian Unsted , Bharathi Kawal and Sumenthree Moodley have taken up additional responsibilities .
The L2D portfolio which houses Eastgate Shopping Centre , the retail powerhouse of the east of Johannesburg , is now managed by Carmen Collison who has a track record spanning 15 years in the property industry . Prior to joining L2D in 2018 , Carmen managed retail assets across a number of listed portfolios , one of which was awarded the Best Performing Property Fund over three years by MSCI South Africa .
L2D believes strongly in growing and providing opportunities to its own people . Nikiwe Mkhabela , an Asset Management Executive , has now taken over managing the Sandton City precinct which includes the Sandton City Shopping
Centre . Nikiwe has over 10 years ’ experience in the property industry . She was previously nominated for the 2015 South African Women ’ s Property Network Young Achiever Award , a reflection of excellence in the work she delivers .
Another exciting change to the business has seen Bharathi Kawal , who has extensive experience in the retail property industry spanning over 15 years , being promoted into the role of Asset Manager from her previous role of Senior Portfolio Analyst . Bharathi will now take care of Botshabelo Mall as well as the office portfolio .
Jonathan Sinden , Chief Operations Officer at L2D comments “ L2D prides itself in its diversity , transformation and providing growth opportunities to its people . We are therefore proud to announce that some of South Africa ’ s most iconic assets will be managed by black women . This will make our portfolio one of the most transformed in the industry .”
Nelson Mandela Square , Liberty Promenade and Liberty Midlands Mall are managed by Brian Unsted as the Asset Management Executive .
EMIRA PROPERTY FUND
CEO Jeff Jennet Emira ’ s turnaround delivers positive full-year performance for investors Emira Property Fund reported a 2.53 % year-on-year increase in distributions for its full year ended 30 June 2018 , confirming its turnaround and return to positive dividend growth .
Geoff Jennett , CEO of Emira Property Fund , also points to the noteworthy operational results that strengthened Emira ’ s portfolio metrics as being a big driver of Emira ’ s performance this year .
Jennett comments : “ Despite persistently tough trading conditions , Emira continued to strengthen its strategies and improve operating metrics . We also delivered on our objectives of responsibly rotating out of local offices and into US retail assets .”
Rebalancing its portfolio saw Emira dispose of R530.6m of assets at a combined 14.8 % premium to book value . Of the 13 properties sold , seven were offices . This reduced Emira ’ s office exposure from 38.7 % to 35.7 % of the total assets of the fund during the year . The disposal proceeds were recycled into Emira ’ s international investment strategy . At year-end , the REIT held R1.9bn of assets for sale , of which R1.8bn comprises 25 offices which are planned as a future portfolio sale .
Emira closed the year with 104 directly held South African properties valued at R12.5bn . It reduced its gross cost-toincome ratio from 37.2 % to 36.8 %, showing that its income grew faster than its expenses .
Emira increased its international exposure to 10 % of its balance sheet during the year , with its new US investment venture representing 3 %.
Emira co-invests in the equity of a portfolio of grocery-anchored convenience retail centres in robust markets in the US with experienced local partners . Together they have a portfolio of four assets . Emira ’ s combined equity investment in the US is R458m ( USD32,3m ), all funded with proceeds of disposals from its portfolio rebalancing drive . Emira ’ s US investments contributed R22.6m to its distributable income . Emira intends to continue its steady investment process into the US in the year ahead .
After its successful debut in residential property investment this year , Emira plans to increase its exposure to this sector . The Bolton is Emira ’ s R204m value-enhancing conversion of its Rosebank office property assets formerly occupied by Sasol into a contemporary residential apartment development undertaken with a specialist partner and 25 % co-investor , the Feenstra Group . The project is converting 10,000sqm of office space into 280 residential units . The first units came on-stream in August to strong demand . The project will be completed by January 2019 .
“ We like this sector , it is a great diversifier for our portfolio and we are actively pursuing opportunities to co-invest with sector specialists that cater for the lower middle-class rental residential property markets . We will also consider other residential conversions , should suitable opportunities arise ,” says Jennett . Emira aims to grow residential property to between
SA Real Estate Investor Magazine SEPTEMBER / OCTOBER 2018 37