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

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.