Indluplace CEO Carel de Wit
JSE-listed residential real estate investment trust Indluplace has managed to get its occupancy level at the Highveld View complex, in eMalahleni, Mpumalanga, up to 95%, compared with 33% in February 2019.
This is testament to the company’s successful marketing initiatives during a time of intense competition in the property market, says CEO Carel de Wit.
He adds that rental escalations remain subdued for now as utility costs increase and low economic growth impacts on affordability.
Indluplace has a portfolio of more than 9 500 units. The company is disposing of its small properties, mainly in the south of Johannesburg, as well as the Trifecta student accommodation building, in Durban.
De Wit expects the transfers to be completed by mid-2020.
The proceeds from the sales amount to about R70-million and will be principally applied to reduce bank debt and to fund the company’s capital expenditure programme that involves ensuring that assets remain robust.
Indluplace continues to identify possible disposals of noncore properties, while maintaining a loan to value ratio of 36% and a strong balance sheet.