Property group Vukile Property Fund has reported that its existing portfolio has expanded to be valued at nearly R10-billion and that it has set its sights on increasing this to R15-billion over the next year or two.

The “property hungry” group’s portfolio had increased by 26% to 78 properties with a total market value of R7.7-billion and a gross lettable area (GLA) of 1 028 960 m2 following the acquisition of several new properties, including the R1.5-billion portfolio from Sanlam, during the 12 months ended March 31.

In the three months after year-end, the group further extended the value of its portfolio to R9.6-billion, adding the East Rand Mall, on the East Rand, the proposed Linbro Park industrial development, in Gauteng, and the Edendale Mall, in Pietermaritzburg, to its portfolio.

Vukile bought a 50% stake in both the East Rand Mall and the Edendale retail centre for R1.1-billion and R204-million respectively. It plans to inject R119-million into the development of a 22-unit, 15 000 m2 warehousing facility at Linbro Park by April 2014.

The finalisation of a number of property deals, including that of Encha Properties’ four properties and that of the Hammarsdale shopping centre, would push the portfolio over the R10-billion mark, after which the company would pursue a portfolio valued at R15-billion through acquisitions, developments and redevelopments.

Vukile has concluded an agreement with black-empowered firm Encha Properties, as part of Vukile’s transformation strategy, to buy four government-tenanted properties from Encha for R1.04-billion.

The deal includes a put-and-call option over the Pretoria Momentum Building, which would increase the value of Vukile’s portfolio by about R1.4-billion.

The property group is also finalising the acquisition of the 19 200 m2 Hammarsdale shopping centre, which is expected to open this month.

Further, Vukile has entered into a joint venture agreement with the McCormick Group for the acquisition of a 50% stake in five retail developments spanning 69 000 m2.

The first three of these developments are under construction, with completion dates scheduled for the end of July and the end of October.

Meanwhile, in the year to March, Vukile disposed of 11 noncore properties with a GLA of 80 445 m2 for a combined value of R372-million.

A further two properties – the Durban Embassy and the Randburg Triangle – with a GLA of 35 412 m2 were sold for R251.5-million after financial year-end.

Vukile has also put the 8 086 m2 Midtown building and the 8 423 m2 Lichtenburg shopping centre up for sale at a yet-to-be-disclosed amount, and is currently selling its Midrand industrial land for R21.8-million.

Meanwhile, the property group has author-ised and contracted R486.2-million worth of refurbishment and expansion projects, including the upgrade and maintenance of Randburg Square, the third and final phase of the upgrade to the exterior of the Hillfox Power Centre, in Roodepoort, and the upgrade and addition of more parking decks for the Bellville Tijger Park offices, in Cape Town, besides others.

The firm has further authorised, but not yet contracted, R133-million of work to upgrade shopping centres, replace air-conditioning units, refurbish lifts, tenant installations and other minor capital expenditure projects.

Vukile declared a distribution of 131.59c per linked unit for the year ended March – a 5.43% increase, compared with the 124.81c per linked unit reported in the prior year.