Capital MD Barry Stuhler said developments would be funded with debt, with the objective of maintaining Capital’s gearing at between 25% and 30%.
While the fund, with a market capitalisation of R13,2bn, plans to grow its portfolio with new developments, it wants to sell retail assets worth R4bn to focus on the industrial and commercial space.
Stuhler said its strategy was to become a specialised A-grade industrial and commercial property fund, with a focus on the four major metropolitan areas in SA. He said retail properties and those properties in the Eastern Cape would be sold.
The portfolio after the merger now holds R17,4bn of direct property and R257m in listed equity investments.
Capital’s portfolio includes R7,9bn of industrial properties, R5,4bn of commercial properties, R3,8bn of retail centres and about R300m of other properties.
Capital’s distribution per unit for the six months to June came in at 31,36c, representing an increase of 10,58% over the 28,36c for the interim period previously.
"Despite the additional benefits from the merger with Pangbourne, the numbers are still very strong, given that they have been achieved in a tough environment," Stanlib’s head of property funds, Keillen Ndlovu, said. He said Capital’s management was one of the "most proactive" in the sector.
