In­ge­nu­ity grows its as­set base by 20 per­cent and eyes more growth

Weekend Argus (Saturday Edition) - - PROPERTY -

PROPERTY de­vel­op­ment and in­vest­ment group, In­ge­nu­ity Property In­vest­ments Ltd, grew its as­set base by 20 per­cent in the year to the end of Au­gust with its in­vest­ment property port­fo­lio in­creas­ing to just over R3 bil­lion from R2.5bn last year, and in­vest­ment property un­der de­vel­op­ment to R247 mil­lion from R183m last year.

Chief ex­ec­u­tive Arnold Maresky says the in­crease in the as­set base was due mainly to ac­qui­si­tions of new prop­er­ties, the com­ple­tion of property devel­op­ments and fair value ad­just­ments.

Net as­set value a share was up 17 per­cent at 110c.

Maresky says the size of the en­larged as­set base has also in­creased the group’s earn­ing ca­pac­ity with con­trac­tual in­come from in­vest­ment property grow­ing to R271.9m from R221.9m last year.

Head­line earn­ings a share were up 12 per­cent to 4.7c. A fi­nal cash div­i­dend of 3.5c a share has been de­clared, 40 per­cent ahead of the pre­vi­ous year.

He said the va­cancy per­cent­age of GLA at year end was 3.3 per­cent but this has sub­se­quently been re­duced to 1.7 per­cent, com­fort­ably be­low the in­dus­try norm. Maresky says de­vel­op­ment re­mains a core func­tion of the group and many mile­stones in this re­gard had been achieved in the past year cre­at­ing ex­cit­ing growth prospects in the years ahead.

Th­ese in­clude the de­vel­op­ment of a mixed-use scheme at 117 Strand Street, which will com­prise 5 000m ² of re­tail, 10 000m ² of pre­mium grade of­fices and 52 apart­ments. For­mal plan­ning ap­proval has been ob­tained with con­struc­tion ex­pected to start early next year and com­ple­tion an­tic­i­pated in the first quar­ter of 2018. The to­tal es­ti­mated cap­i­tal ex­pen­di­ture is R560m.

Plan­ning ap­proval for a fur­ther build­ing of ap­prox­i­mately 17 600m² on the Reeds site on the Cape Town Fore­shore fac­ing the free­way has been ob­tained.

In ad­di­tion the con­struc­tion of Aure­con 2 at Cen­tury City, a 3 281m² of­fice block, which has been let to Aure­con South Africa on a long lease, is due for com­ple­tion early next year. Maresky said fur­ther ex­cit­ing ac­qui­si­tions with sig­nif­i­cant de­vel­op­ment op­por­tu­ni­ties had been made since year end.

“This de­vel­op­ment fo­cus has en­abled us to ex­tract max­i­mum value in new grass-roots devel­op­ments and build­ing re­fur­bish­ments, and the group re­mains well po­si­tioned for fur­ther good growth. Our pre­dom­i­nantly Cape-based as­sets are con­sid­ered to be very at­trac­tive with strong un­der­ly­ing cash flows and ex­cel­lent prime de­vel­op­ment op­por­tu­ni­ties re­main in our port­fo­lio.”

ON THE UP: Aure­con 2, now un­der con­struc­tion at Cen­tury City, is joined to Aure­con 1 by a sky­walk.

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