Investment case
With a focus on quality, defensive assets, Accelerate offers a compelling case for investors seeking to own a leading property portfolio.
A leading portfolio with consistent performance
| Return on equity | R’bn | Growth (%) |
| Net asset value (NAV) at listing (Dec 2013) | 3,3 | |
| NAV growth | 4,7 | |
| Closing NAV at 31 March 2019 | 8,0 | 142,4% |
Our property portfolio grew by 124% since listing in December 2013, delivering consistent growth over time.
We have a portfolio of quality assets with strong underlying property fundamentals. (As at 31 March 2019)
- 5,3 year weighted average lease expiry with 10,04% vacancies.
- Rental escalations of 7,4% (6,6% including our offshore portfolio).
- Weighted average cost of funding of 8,4%, with 83,8% of debt hedged.
- 65,7% of tenants are classified as A-grade by revenue (listed/large national tenants).
We have significant exposure to the retail sector. The retail sector (South Africa and Europe) comprises 68% of our property portfolio by revenue. Our portfolio includes two regional shopping centres and a super-regional retail hub.
The completion of the Fourways Development will significantly increase the value of our Fourways retail asset base.
Once completed, Fourways Mall will be the ultimate shoppertainment destination. While construction continues, several exciting venues have already opened in line with our strategy of creating an unprecedented family-oriented shopping experience.
We established a European platform with a unique strategy of investing in long-term (greater than 10 years), single-tenant net leases. The platform enables Accelerate to assess and act on new opportunities in Europe through a dedicated on-the-ground management team.
The current investment includes six properties in Austria and three in Slovakia, tenanted by blue chip German DIY retailer, OBI. It is a scalable platform with on-the-ground deal origination, asset management and finance functions. The offshore portfolio continues to perform comfortably within expected parameters.
Accelerate’s board structure and policies and procedures demonstrate that it focuses on excellent corporate governance and transparency, embraces King IV and that it is accountable to shareholders and other stakeholders.
The board of directors is responsible for the overall direction and supervision of the company, with general management delegated to the executive members. The executives and certain senior management are responsible for the asset management function, which in turn directs the property management function.
Accelerate has a non-complex, easily understandable group structure that is transparent to stakeholders.