With four significant property portfolio acquisitions in six months, since listing on the JSE with property assets of R280 million, the fund's property assets have increased to R1.7 billion.
This specialised retail property fund focuses on mid-sized community and small-regional shopping centres. The property loan stock company listed on the JSE on 14 December last year with three properties spanning 27 000sqm.
On transfer of its latest acquisition, anticipated in August 2012, its property portfolio will comprise 14 shopping centres covering 177 000sqm.
Meaningful portfolio expansion is driving its strategy to grow a specialised retail property portfolio anchored by and operated in partnership with the Spar Group. Its specialised strategy has secured investment from Liberty Group and Regarding Capital Management, its founding investors.
"Focused specialisation will be a key driver of sustainable investment performance in the SA listed property sector," says Synergy Income Fund CEO William Brooks. "These acquisitions reinforce its specialised retail offering in the listed property sector. We believe that our focus on the lower LSM high growth market will deliver investor value, strengthened by strong operational strategies and controls."
Brooks adds that mid-sized commuter centres are usually dominant in rural and township nodes and have a formidable mix of national tenants comparable to premium urban centres. "Lower income commuter retail assets in these areas offer defensive qualities, solid lease covenants, good growth and robust trading densities."
Besides improving the overall quality of the portfolio, these acquisitions have broadened its geographic diversity. It now holds properties in Gauteng, KwaZulu-Natal, Western Cape, Free State, Mpumalanga, North West and Limpopo.
Brooks notes the investments all meet the criteria of mid-sized commuter centres in high-growth lower LSM nodes. "Active management of the property portfolio, by its asset managers, Capital Land Asset Management and Spire Property Management, will unlock further value.
"We continue to focus our attention on value-enhancing growth opportunities presented in the lower LSM retail space," he concludes.
