South Africa\u2019s office and retail property market is gaining a second wind after years of being unloved, according to Investec Property Fund Ltd.<\/p>\n
Half of the firm\u2019s 77 new leases signed with clients in the year through March were in those sectors, creating an opportunity to dive back in after a period of disposals, co-chief executive Officer Andrew Wooler said in an interview.<\/p>\n
The fund, which has real-estate investments of R22.1 billion ($1.39 billion) in South Africa and Europe, had previously spent 2021 selling retail assets to free up capital for higher demand segments such as warehousing and logistics, he said.<\/p>\n
\u201cThe pivot in South Africa is now that everything is certainly stabilized, and it feels like it\u2019s stabilized in our portfolios,\u201d Wooler said.<\/p>\n
Investec Property Fund may dispose of its 65% stake in a pan-European logistics portfolio as rising property values and falling rental yields create an exit opportunity.<\/p>\n
\u201cThere\u2019s opportunity to exit and crystallize significant value for shareholders and then recycle that capital,\u201d Wooler said.<\/p>\n
The fund reported an 11% jump in earnings in the year through March, as vacancies more than halved. Property income advanced to 1.1 billion rand, delivering a 34% return to shareholders. The fund expects net operating income to climb as much as 5% in the coming year.<\/p>\n