Investec Property Fund

Investec Property Fund

Investec Property Fund

Investec Property Fund Limited (IPF) is a South African Real Estate Investment Trust (REIT) which listed on the Johannesburg Stock Exchange (JSE) in 2011. The Fund’s investment portfolio comprises R27 billion of direct and indirect real estate investments in South Africa, the UK and Europe.
 
In South Africa, the Fund directly owns a sizeable portfolio of 92 properties in the retail, industrial and office sectors valued at R15.7 billion and a 35% interest in Izandla valued at R0.3 billion. c.50% of the Fund’s balance sheet and 45% of earnings are derived from offshore investments. This comprises strategic property investments, mainly in logistics, in the developed markets of Europe and the UK where the Manager has a presence on-the-ground with in-country expertise. These investments include an interest in Argo UK Fund (“UK Fund”) of R1.0bn, an investment into a Pan-European logistics portfolio of R6.8bn and an investment into a Pan-European light industrial portfolio of R0.3bn.
 

The Fund’s best-of-breed portfolio has been built based on adhering to its investment philosophy of acquiring quality assets with compelling property fundamentals in targeted sectors in selected geographies where it has in-country expertise. More recently, the Fund has strategically shifted its focus towards the logistics sector, as a result of which, logistics assets now comprise 46% of IPF’s investments globally.
 
IPF is a company incorporated in South Africa with registration
number 2008/011366/06, listed in the Real Estate Holdings and Development sector and obtained REIT status on 1 April 2013.   

Diversification across core developed markets

IPF’s diversified balance sheet, with investments in developed markets offshore as well as a quality local portfolio, has allowed the Fund to generate returns throughout the cycles. This enables it to deliver on its objective to optimise capital and income returns over time for shareholders.    

SA properties UK Fund Izandla investment Pan-European logistics platform Pan-European light industrial platform
Number of properties 92 14 15 47 25
GLA 1,111,190 m 2 113,409 m 2 83,343 m 2 1,131,730 m 2 164,000 m 2
Value R15.7bn £267m R748m €987m €126m
Holding 100.0% 38.0% 35.0% 65.0% 25.0%

Key differentiators

Though we achieved significant progress, we believe there’s room for improvement. We continue to focus on our four pillars as a key strategic priority.

Revenue security and growth

We aim to keep our vacancies low (they have decreased from 4.0% to 3.1%, excluding development vacancies). We invest ahead of time to secure our revenue stream. We create innovative solutions, tailored to our client needs.

01

Revenue

Client service excellence

Our client service distinguishes IPF from other property funds. Our client engagement feedback strategy ensure that we address our client needs timeously to keep our service delivery relevant.  We do this through a scoring mechanism which provides us with  measurable and actionable objectives. 

02

client service

Value-add asset management and capital allocation

  • With our relevant, efficient core offering, we:
    • Make sure our level of service continues to set us apart
    • Maintain efficient capital allocation
    • Maximise long-term risk adjusted returns
    • Increase offshore exposure to 20% (a core objective)
    • Allocate up to 10% into ‘broken core’, value-add transactions and specialised assets.

03

03

Cost efficiency and system optimisation

In the current environment, our primary focus is on keeping our costs largely below inflation.  We commit to spending to improve our client service and/or to enhance the safety and security of IPF’s offering. Our variable expenses have grown as we’ve increased our client incentives in this competitive environment.

04

cost efficiency

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