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Investment Philosophy

SA Corporate is focused on achieving long-term 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 can achieve a balance between risk and reward within the framework of its determined risk appetite and tolerance levels.


To achieve our vision of sustainable distribution growth and long-term capital appreciation, the Board and management at SA Corporate are constantly required to review the use and allocation of the available resources to ensure maximum effectiveness. Below are a few of the primary trade-offs that we have made amongst capitals this year:

  • Maintaining a quality portfolio - we constantly have to assess the quality of our property assets, recycling from those that do not meet our investment criteria to those that will better contribute to sustainable distribution growth.
  • Divesting from properties to ensure financial sustainability albeit with initial dilution to distributable income in favour of an investment in a property portfolio resilient over the long-term.
  • Continued occupancy versus positive rental reversions – it remains cheaper and often less risky to retain a performing tenant, rather than to maximise income. With multiple tenant failures and oversupply, managing vacancies and retaining tenants has been a priority, which often came at the cost of negative rental reversions.
  • Financial sustainability versus environmental sustainability - implementing water- and electricity saving strategies may impact on the company’s short-term liquidity position but provide long-term benefits in terms of reduced environmental impact and lower occupancy costs for tenants.
  • Additional investment to repurpose office space to reduce vacancy - despite a decision to exit the commercial portfolio, oversupply in the office sector makes it imperative to find innovative and alternative uses for vacant office space while we are in the process of exiting, which often can only be achieved through additional investment.
  • Offering incentives to attract new residential tenants – it is the nature of managing a residential portfolio that attracting new tenants requires discounting after which the inherent friction of relocating allows for a gradual increase of rentals.

The Group can make use of gross debt and corporate guarantees up to a maximum of 50% LTV as per its lenders’ covenant requirements approved in October 2021. The long-term strategy of the Board is to maintain the net borrowing limit between 33% and 38% of the underlying assets of the Group. The challenges brought about by the Covid-19 pandemic necessitated more prudent interim measures to be implemented, in the form of engagement with lenders, the result of which was a relaxation of covenants. The recovery in operational performance and the partial settlement of debt from divestment proceeds has meant that debt metrics are robust.