To optimise income and capital growth for shareholders through strategically growing our asset base while maintaining our strong retail bias.

Accelerate’s vision is simple – to be the most valued property fund on the Johannesburg Stock Exchange (JSE). To ensure that we realise our vision, we implemented a clearly defined strategy with strategic objectives to providing the roadmap. We pride ourselves on our evidenced delivery against strategy and continue to make great strides in meeting objectives.

Locally, the group is retail biased and strives to maintain a long-term portfolio balance of 70% retail, 15% office and 15% industrial property assets. We focus on acquiring high-quality property assets underpinned by long-term leases with strong, reputable tenants.

Focusing on strategic nodes has proven key to our success. We continue to strengthen current strategic nodes through development and capex spend on existing properties, and the further acquisition of high-quality properties.

Growing our portfolio
(Asset management)

Enhancing returns on our assets
(Property management)

Optimising our funding
(Financial management)

Delivering value to stakeholders
(Relationship management)

  • Investing in quality property assets
  • Concentrating on strategic nodes
  • Creating new strategic nodes
  • Maintaining our retail focus
  • Our offshore strategy
  • Redeveloping and upgrading properties to enhance their value
  • Diversifying our funding while proactively managing interest rate risk
  • Growing our distributions to shareholders
  • Maintaining tight control on property expenses
  • Delivering on tenants’ expectations

Growing our portfolio (Asset management)

We grow and diversify our asset base while maintaining our strong retail bias through active asset management, that is, exploiting investment opportunities as they arise, pursuing optimal development and expansion opportunities and disposing of non-core assets.

Our strategic objectives Relevant key performance indicators Outlook
Investing in quality  property assets

Increase in number of properties owned (61 up from 52 in 2015)

Purchase of KPMG buildings during the period

Accelerate has a strong pipeline of local acquisitions that it will strive to complete.

Accelerate is also considering the purchase of international properties.

Concentrating on  strategic nodes 

Total investment per strategic node:

  • Fourways, Johannesburg: R4,8 billion
  • Charles Crescent, Sandton: R412 million
  • Foreshore, Cape Town: R305 million
  • Somerset West: R180 million

Accelerate is looking at the best possible options to develop its undeveloped bulk in the Fourways area.

While the Portside acquisition has been finalised, the transfer is yet to be completed. We expect this to take place within the first quarter of the 2017 financial year.

Creating new  strategic nodes

Maintaining our retail focus

Acquisition of Eden Meander in George The Eden Meander Lifestyle Centre acquisition has the ability to allow Accelerate to create another strategic node within the Western Cape. Eden Meander is a 28 240 m2 centre in George. The acquisition comes with bulk for future possible expansion and development. The suspensive conditions for this acquisition still need to be fulfilled.
Our offshore strategy Seeking further diversification by exploring international opportunities

Accelerate’s strategy is to focus on single-tenant, net long lease properties in the office, retail and industrial sectors that are strategic to blue-chip multinational or large national tenants. 

Accelerate is in the process of launching this offshore strategy with target countries in Central and Eastern Europe.

Enhancing returns on our assets (Property management)

Tenant retention is a key focus of our property management function. We pride ourselves on being hands-on and always available to tenants, should any issues arise. As such, all tenants have access to the portfolio managers, senior management and executives as and when necessary.

The outsourced property management companies are responsible for property maintenance, and service level agreements are in place for waste management, security, cleaning, landscaping, and pest control services. The portfolio managers and the head of leasing continually monitor tenant placements throughout the duration of lease agreements.

Our strategic objectives Relevant key performance indicators Outlook
Redeveloping and upgrading properties to enhance their value

Capex investment of R32 million in capex spend during the year ended 31 March 2016

11,4% increase in GLA under management from the year ended 31 March 2015

We will continue to invest in the upkeep and upgrade of our existing buildings.

Optimising our funding (Financial management)

Financing growth is an essential focus for development. We recognise the need to manage resources and capital responsibly through diversifying funding sources to mitigate volatility and risk in funding costs. Accelerate accessed the capital markets and further diversified its funding and hedging lines with existing key stakeholders.

Our strategic objectives Relevant key performance indicators Outlook
Diversifying our funding while proactively managing interest rate risk

86,9% of debt hedged

Funding diversity:

  • 33% finance through debt capital markets
  • 67% finance through three different banks
  • 8,24% blended interest rate
We remain committed to mitigating risks surrounding funding by diversifying the pool of funding available to us. During 2017, we will focus on retaining this structure, as well as minimising the effects of interest rate movements by proactively managing our swaps.

Delivering value to stakeholders (Relationship management)

Accelerate is committed to creating and maintaining inclusive, honest and mutually beneficial relationships with all stakeholders. We aim to create value for stakeholders, including shareholders, tenants and the community.

Delivering to shareholders

Accelerate believes that sustaining long-term distribution and capital growth impacts shareholder confidence in our vision and our ability to meet objectives effectively. We aim to deliver enhanced distributions and capital growth for shareholders and believe that our systematic approach to building the necessary support structures, together with our ability to acquire quality assets, positions us to continue creating sustainable value for shareholders.

Delivering to tenants

We seek to attract and retain quality tenants by focusing on providing the right tenant mix through redeveloping and upgrading properties as necessary. We regularly engage with tenants to ensure we fully understand and meet their needs.

Delivering to communities

The communities within our geographical footprint play an important role in our business. Therefore, investment in these communities, especially in education, is essential and yields sustainable returns, potentially creating opportunities for youth. Our aim is to build sustainable relationships with education facilities in the areas in which we operate and work to help them provide quality education. See more information in the social and ethics reporting section.

Our strategic objectives Relevant key performance indicators Outlook
Growing our distributions to shareholders

Distribution growth year-on-year was 9,1%

Shareholder distribution of 53,67 cents per share

We will continue to grow our distributions to shareholders through a disciplined execution of our growth strategy while focusing on a reduction in costs.
Maintaining tight control  on property expenses We remain focused on tightly managing expenses and finding new and innovative ways to save costs for the fund and our tenants Net property expenses of R47,6 million (2015: R34,7 million), in conjunction with R38,7 million in other operating costs (2015: R36,3 million), resulted in Accelerate reporting a 13,40% cost‑to‑income ratio (2015: 13,44 %).
Delivering on tenants’ expectations

Tenant retention rate of 93%

Vacancies of 7,13% (net of structural vacancies)

We remain committed to improving our tenants’ experience, and will continue to engage with tenants to best understand their needs.