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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