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Investment Philosophy

SA Corporate is one of the oldest established property companies in the South African market. Its diverse investments span across industrial, retail and commercial properties, primarily in the major metropolitan centres of South Africa, with a secondary node in Zambia.

In addition, in 2014 SA Corporate invested in the AFHCO Group, an innovative residential focused property company with properties primarily located in Johannesburg’s innercity. In 2017 the Group also invested, as an extension to its retail portfolio, in a self-storage business that operates primarily in the Group’s and other landlords’ retail shopping centres.

The Company is listed on the JSE as a diversified Real Estate Investment Trust (“REIT”).

To achieve our vision of sustainable distribution growth and
long-term capital appreciation we aim to:

  • Focus on convenience retail
  • Consolidate a quality industrial portfolio
  • Divest from remaining commercial properties
  • Establish a quality residential rental portfolio

Our Key Risks

  • Investment returns: non-sustainable distribution growth
  • Increased vacancies, negative rental reversions and arrears
  • Inadequate human capital
  • Financial reporting risks: inaccurate forecasting and ineffective controls
  • Competition from e-commerce

With diversified investment activities, SA Corporate is focused on achieving longterm sustainable distribution growth by ensuring its portfolio comprises defensive assets that generate robust NPI. To achieve this, the Group embraces active asset management and uses acquisitions, developments, disposals and the recycling of capital to achieve its objectives. SA Corporate has, and will continue to, consider both development and investment partnerships where it is able to achieve a balance between risk and reward within the framework of its determined risk appetite and tolerance levels.

Funding
Parameters

The Group is allowed to make use of debt and corporate guarantees up to a maximum of 45% loan to value (“LTV”) as per the lenders’ covenant requirements. The long-term strategy of the Board is to maintain the borrowing limit at a maximum level of 40% of the underlying assets of the Group.