Emira continues its upward climb
By Alistair Anderson
Medium-sized real estate investment trust Emira Property Fund (EMI) is continuing its rise after poor investment caused it financial hardship for a few years.
Its acquisitions of 12 property portfolios so far this year has led to a R1.6bn increase in its portfolio value‚ pushing the total to 141 properties‚ valued at R11.47bn.
CEO James Templeton said the portfolio had a forward yield of 9.1%. This improved performance after years of pain during which Emira’s income pay-outs weakened regularly‚ is turning the fund into a possible takeover target.
Redefine Properties recently bought 11% of Emira but Redefine chairman Marc Wainer said he would buy more in the future. “We bought a strategic stake. We would have liked more than 11%. I’m waiting to see how things pan out next year. Redefine is always open to deals which could benefit us and we keep various companies on our radar‚” Mr Wainer said.
Properties acquired by Emira included Menlyn Corporate Park‚ worth R614m. This was the fund’s largest purchase and was expected to yield 8.6% in its first year.
Emira also acquired an R830m portfolio of eight properties‚ of which six were in the Western Cape‚ enhancing its exposure to the province.
Retail and industrial properties were 63% of this portfolio.
Emira is also internationally diversified through its interest in Australia stock exchange-listed Growthpoint Properties Australia. Its investment in the fund was valued at R666m as at June 30‚ with total assets of R12.5bn.