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Press archive

Redefine ranks 2nd in SA for excellence in integrated report at prestigious 2018 EY awards
03 August 2018

3 August 2018 – Our commitment to excellent integrated reporting continues to bear fruit with a consecutive second ranking among the top 100 JSE listed companies for the excellence of our integrated reporting.After consistently placing in the top 10 in the EY Excellence in Integrated Reporting Awards since 2015, we broke through to reach second place last year – a feat we are proud to have replicated this year, with honours. Redefine was the only REIT that featured in the top 10.The rankings are based on how well companies explain to stakeholders how they create value over time.At Redefine, transparent disclosure forms a key cornerstone upon which trust is built and keeps us on course to live the Redefine values and generate sustained value for all our stakeholders.This accolade shows that sustainability is not just a buzz word for us, but a dedicated business approach that is centred on balancing short-term decisions and long-term outcomes to create meaningful, sustained value for all our stakeholders. Our integrated report provides us with a one-stop platform to engage with all our stakeholders and offer them a window into how we are creating value both inside and outside of the company. According to the adjudicators, the best reports need to provide an understanding of short- to long-term risks while providing an excellent description of the group’s business model, including primary business activities as well as the outcomes. We are delighted to have met these high international benchmarks and are more motivated than ever to continuously align our business to meet the needs of all our stakeholders in an impactful way.ENDS

Redefine continues expansion drive into fast-paced Polish market with €185.8 million logistics deal and priority right to pipeline of 24 new developments
05 July 2018

Johannesburg – 5 July 2018 – JSE-listed diversified real estate investment trust Redefine Properties continues to expand into the exciting Polish market with the acquisition of a 95% share for €185.8 million (R2.9 billion) in a portfolio of nine operating logistics properties located throughout Poland. It has also entered into a five year exclusive priority right for a pipeline of 24 new warehousing and logistics developments with Panattoni, a market leader in the leasing and development of logistics properties in Europe.The developed properties are in established logistics locations and were bought from a fund managed by one of the largest United States global asset management companies. The properties have a gross leasable area of 313,507 square metres, are 98% occupied and have a weighted average lease expiry of 3.5 years. Griffin Real Estate, which sourced the transaction, will own the other 5%. The well-located, modern, high specification portfolio has attracted sought after tenants such as Kaufland, Carrefour, Saint Gobain, Hellmann, Terg (Media Expert), Eurocash, CEVA, BRANDBQ and DSV to name just a few.Panattoni has to date developed 35% of the modern industrial facilities in Poland and developed the nine operating properties that have been acquired.The development pipeline consists of 24 identified development opportunities, which total gross leasable area of 1.9 million square meters. Redefine will have the right but not the obligation to acquire and develop these assets.“This move into the rapidly expanding Polish logistics sector is an exciting opportunity to expand our European brand by building a significant logistics platform,” says Redefine CEO, Andrew Konig.The developed assets being bought have an initial income yield 7.1%, while interest rate and currency volatility has been mitigated through full hedging.“We accessed offshore funding at competitive pricing and productively deployed a portion of recycled offshore capital, while there is no additional burden to Redefine’s resource base. Incremental distributable income will be applied towards our stated intention of phasing out non-recurring income,” says Konig.The Polish industrial market, which has a total supply of 13.9 million square meters of modern industrial and logistics space, is benefiting from a significant increase in demand for logistics space on the back of robust retail growth. National vacancies were at historical lows of 4.8% at the end of the first quarter in 2018.The sector is also underpinned by strong long-term fundamentals due to recently introduced limitations on agricultural land trades, which is slowing down the development pipeline and increasing the value of zoned land holdings. An increase in construction costs of about 20% during the past year has increased market rentals and is expected to improve the re-letting potential of current supply.Redefine late last year acquired a strategic 25% stake in Chariot Top Group for R907.9 million, giving it direct access to a retail portfolio of 28 quality, established and well-located assets across Poland. Prior to this Redefine had acquired a majority interest in EPP on 1 June 2016, marking the largest ever real estate investment transaction in Poland, as well as the largest ever single South African transaction of income generating real estate assets in Central Eastern Europe.“This transaction enhances the geographic and sectoral diversification of our portfolio as we continue to invest strategically in exciting geographies, engage talent, optimise capital, operate efficiently and grow our reputation,” concludes Konig.ENDS 

Redefine’s agile industrial property strategy helps unlock value
04 July 2018

Cape Town, South Africa – 04 July 2018: JSE listed diversified Real Estate Investment Trust (REIT) Redefine Properties remains firmly focused on delivering customised solutions in the industrial property sector despite constrained economic conditions.Two primary drivers of potential growth for the industrial sector are capital investments into automotive and mining-related industries and South Africa’s ability to develop its infrastructure as a transit hub to serve the Southern African Development Community (SADC) region.In this regard, the government is placing emphasis on infrastructure development by offering tax incentives for businesses operating within the eight Special Economic Zones (SEZ), with three additional SEZs being planned by the Department of Trade and Industry.Transnet’s 10 year, R350 to R380 billion worth of capital projects to national ports and rail has seen the recent R4.2 billion upgrade of the Cape Town Container Terminal (CTCT) at an estimated   40% increase in container handling capacity.  As a result, occupiers of port bound warehouses are relocating to new industrial nodes outside the congestion zone around Paarden Eiland and Montague Gardens.Brick-and-mortar retailers continue to drive demand for warehousing and logistics space and show increasing investment into warehousing management systems for improving supply chain capabilities to e-commerce business.“These projects bode well for future growth in the industrial sector,” says Johann Nell, National Asset Manager, Industrial, Redefine Properties.Manufacturing continues to face strong headwinds with erratic demand and policy uncertainty.“As a result of these trends, tenants are looking to consolidate manufacturing, assembly and distribution facilities to reduce overheads, which dictate changes to business requirements down the value chain,” says Nell.“Our ability to put together bespoke developments affords us the opportunity to increase the quality of our value offering. In the Western Cape we are accommodating mixed use offerings at Brackengate 2 Business Park by adding a 3,000sqm Planet Fitness and 8,200sqm Brights Hardware into the precinct.”Favourable lending terms is another big driver as owner occupiers who wish to exit the leasing market are taking on debt, freeing Redefine’s capital for reinvestment. This trend is particularly driven by businesses setting up supply chain networks in South Africa. To take advantage of the trend towards owner-occupancy, Redefine has entered into joint venture agreements on certain developments e.g., Bidvest at Brackengate 2. Brackengate 2, a joint venture with VDMV Property Group is a newly established business park located next to Shoprite’s Cilmor Distribution Centre. At Brackengate 2, mid-sized units are being planned to accommodate value adding businesses that will benefit from the location.  Redefine’s focus on refurbishment and improvements of existing assets has been key to maintaining relevance through sustainable asset retention within the primary industrial nodes on a national basis. Furthermore, incorporating green design elements such as LED lighting, daylight harvesting, solar power and grey water systems on new and existing properties has reduced operating costs for tenants. Atlantic Hills, Redefine’s JV with Nedbank CIB and Abland, is situated on the Potsdam Interchange and together with the City of Cape Town this extends the M12 motorway from Giel Basson Drive onto the N7. The new cold storage facility owned and occupied by SA Fruit Terminals will be the first major development at Atlantic Hills to break ground.Located near Durbanville, Montague Gardens and Welgelegen, Phase 1 of Atlantic Hills is completely sold out.  Negotiations continue for sale and leasing on the balance of Phase 2 and Phase 3, in all totalling 44.4 hectares of developable land.“We remain committed to working with the best local partners and providing the highest quality space available in the market. Brackengate 2 delivers on the promise and offers the warehousing and logistics market quality industrial land that links with intermodal infrastructure,” says Nell.“Our continued focus on people-centric property management is testament to our sustained tenant retention.”Recently completed projects at Brackengate 2 include Bidvest’s Plumblink 6,791sqm and Spec 5,642sqm buildings as well as the new GEA facility measuring 8,973sqm. Having sold most of the Stikland erven Redefine’s focus is to optimise the main business park precinct for lease driven developments, offering prime highway exposure to a large portion of the scheme. “The outlook for industrial property remains promising and we expect an increase in market share in prime industrial nodes through acquisition and development,” concludes Nell.ENDS

Redefine wins prestigious IAS corporate reporting award
22 June 2018

JSE-listed diversified Real Estate Investment Trust (REIT) Redefine Properties (JSE: RDF) has been voted as the leader in corporate reporting in the property sector for the 2017 financial year. This award was made during an auspicious Investment Analysts Society (IAS) function held in Sandton yesterday.The IAS is a non-profit making liaison body for the investment analysts profession and currently boasts 1,300 members across all walks of the profession - Investment Banks and Houses, Fund Managers, Brokers, Insurance Companies, Pension Funds.“We take our role as custodians of capital very seriously and continue to strive to maintain the highest possible standards in corporate reporting. We are therefore encouraged to have been recognised by such an important professional body and by those within the profession who need to make very important investment choices based on the transparency and veracity of our value creation story,” says Redefine CEO, Andrew Konig.At Redefine, sustainability is not just a buzz phrase, but a dedicated business approach that is centred on balancing short-term decisions and long-term outcomes to create meaningful, sustained value for all stakeholders.The company remains firmly focused to deepen stakeholder engagement throughout the business.“We create sustained value for all our stakeholders, by placing people at the heart of what we do and are therefore not only driven by the pursuit of profit, but also by the pursuit of purpose, which is a key ingredient to a strong, sustainable and scalable organisational culture,” says Konig.ENDS

Redefine attracts big box retailers to its centres
06 June 2018

Johannesburg, South Africa, 06 June 2018: JSE listed diversified Real Estate Investment Trust (REIT) Redefine Properties (JSE: RDF) has finalised leases with two international big box retailers set to debut at its centres later this year. International retailers looking to open and expand their presence in the country have already snapped up more than 37 000sqm of prime retail space across Redefine’s portfolio. One of the world’s largest home improvement retailers, French based Leroy Merlin will open its first store in South Africa at Redefine’s Stoneridge Centre in Modderfontein while international sport goods retailer Decathlon will be opening at Centurion Lifestyle Centre and Wilgeheuwel, Little Falls to further grow its footprint in the country. Leroy Merlin will occupy some 17 000sqm of space at Stoneridge Centre covering two floors, parking and materials yard on the lower level and showrooms, trading floor, storage area, office space as well as a pick up zone on the upper level. Redefine’s development team had to substantially remodel the specification document designed for an European environment to provide a new two level configuration to suit  the South African environment and ensure consistency of look and feel across Leroy Merlin’s global stores. Nashil Chotoki, National Asset Manager, Retail at Redefine Properties says, “The area surrounding Stoneridge Centre represents a prime location for an offering like Leroy Merlin. Over and above the established estates and precincts, massive housing growth is predicated for areas like Greenstone, Modderfontein and Linbro Park.” Leroy Merlin stores offer a variety of internationally-sourced products with specialised advice and training for customers of any level of DIY expertise. Their stores normally carry anywhere between 30,000 – 60,000 products with Leroy Merlin’s customer focused employees able to offer sound advice on solutions, products and installations. Cedric Sennepin, CEO of Leroy Merlin SA, says, “It is important for Leroy Merlin to work with serious partners such as Redefine and we are confident that we developed a first store that will attract customers from far.”The run off benefits of bringing big box retail to communities is more jobs for local people as well as spill over traffic for other outlets in the area. Directly and indirectly the home improvement retailer will create jobs for more than 200 people.“Big box retail solutions offer a greater diversity of options for shoppers. Consumer trends point to greater support for such convenience centres and we feel that retailers like Leroy Merlin & Decathlon enhances the “convenience” of some of our assets and create a point of differentiation,” says Chotoki. “Leroy Merlin in combination with other new retailers at the centre will change the profile of the node.” Spending on home improvement continues to remain resilient despite a sluggish economy as consumers favour DIY options to save money. Millennials and baby boomers are choosing to update their homes instead of trading up and in the process fast fashioning a new trend.  “Technology has inspired DIY projects. Millennials today simply google a solution, buy products from home improvement stores to save time and money,” adds Chotoki. “We are proud to be leasing space to global brands like Leroy Merlin & Decathlon. The combination of top quality assets and unique locations is an irresistible proposition for tenants in any economic cycle. We hope to further build a lasting partnership with these brands and are currently exploring other opportunities in the Redefine portfolio.” Redefine’s two lease agreements with Decathlon cover approximately 5 000sqm. The sports lifestyle category has been the fastest growing retail category in terms of sales and is largely driven by a healthier lifestyle being adopted by South Africans. “Decathlon’s offerings - products and price points, suit local tastes while the instore “experiential” environment like mini football field and netball courts is fast proving to be a crowd pleaser,” says Chotoki in conclusion.“Retailers continue to seek new neighbourhoods where they can achieve great revenue and our projects in burgeoning nodes like Modderfontein and Little Falls offer that density of new traffic that can support their businesses.” Redefine is also in talks with H&M and other international retailers across the larger retail formats.ENDS 

Marc Wainer stepping down as Redefine’s executive Chairman in November
08 May 2018

At Redefine, we are committed to creating sustained value for our stakeholders. We've long believed that world-class, fit-for- purpose governance is the cornerstone of our business's success, which is why we continuously assess and enhance our Board's skills, diversity and independence.As a part of this ongoing process, Marc Wainer will be stepping down as Redefine's executive Chairman in November. This will enable the Board to appoint an independent non-executive Chair, in line with the recommendations of King IV, as well as ensure that there is adequate time to ensure a smooth transition.Going forward, Marc will remain an executive director of Redefine, and his day-to- day role remains unchanged."It's been a great privilege to have served as Chairman for the past four years. I have full confidence in our CEO, Andrew Konig, and the Board as a whole. In the years ahead, I look forward to continuing to be part of the executive team and the Board as we work towards realising our vision - to be the best South African REIT", concludes Marc Wainer.

Redefine delivers sustained value through operational efficiencies and executing its strategy to protect and expand its property portfolio
07 May 2018

Operating conditions may remain challenging but JSE-listed diversified Real Estate Investment Trust (REIT) Redefine Properties (JSE: RDF) continues to execute long-term strategic thinking and efficient management of its property portfolio to deliver sustained returns and value.Redefine, which recorded a 5.5% increase in its distribution to 47.30 cents per share for the interim period to 28 February 2018, remains firmly on track to harness the resources at its disposal and expects to maintain this growth rate for the full 2018 financial year.With local developments in progress to the tune of R5.9 billion, ongoing and value-enhancing redevelopment of existing properties, disposals and international acquisitions Redefine has the ammunition to advance its strategy of diversifying, growing and improving the quality of its property portfolio.During the reporting period Redefine acquired a strategic 25% stake in Chariot Top Group for R907.9 million, giving it direct access to a retail portfolio of 28 quality, established and well-located assets across Poland. On the local front, the highlight was the ongoing development activity to protect and expand the property portfolio with the completion of redevelopment projects amounting to R212.7 million and redevelopment projects in progress at R743.4 million. The property platform remains biased towards retail at 41% of its sectoral spread by value, while its offshore footprint contributed 25% to distributable income.Subsequent to the reporting period, Redefine entered into agreements to sell 19.5% of its interest in Cromwell for R3.7 billion and its equity interest in directly held Northpoint for R1.6 billion with the proceeds expected to be received this month subject to the approval of the Australian Foreign Investment Review Board. On the local front, the remaining 50% of 115 West Street (Alexander Forbes) was acquired for R750 million.“Our strategy is appropriate for the environment we are operating in. A strong feature of our approach has been to recycle capital and during this reporting period we raised R2.6 billion in terms of selling non-core assets, which bolsters liquidity,” says Redefine CEO, Andrew Konig.The new dawn brought about since Cyril Ramaphosa became President, together with support from global growth and commodity prices, are expected to lead to higher investment and economic growth opportunities going forward.While Konig says South Africa’s economic activity needs to double to make any significant inroads into property fundamentals – which are soft at present – he is excited about a new mood for the economy, which is evidenced by rising confidence levels.“Rising confidence levels are palpable and we welcome and are supportive of interventions introduced by President Ramaphosa to propel the economy forward. While we are noting some signs of this shift in sentiment in terms of leasing interest, sentiment must translate into economic growth at double the current rate to alleviate soft property fundamentals,” he says.For Redefine it is about remaining focused on what matters most – operating efficiently, investing strategically, optimising capital, engaging talent and growing reputation.Redefine’s Financial Director, Leon Kok, reports a healthy operating margin of 82.7% for the interim period, with the property cost ratio remaining stable at 33.9%. The overall occupancy rate improved to 95.8% and tenant retention measured 94.7% from 86% in the comparable half year in 2017.“I am happy to report very sound credit metrics, with our loan to value ratio dipping to 40.1%. We will look to reduce this even further to trend to below 40% over time. Our cost of debt funding reduced to 6.9%,” he says.Redefine’s total assets are valued at R93.4 billion – an increase of R1.9 billion since the year end in August 2017.Other highlights include gaining a level 4 BBBEE rating, a gold SAFMA award for solar PV implementation – total installed solar PV capacity is now 11,697kWp and Redefine has 43 Green Star certifications – and 47 learners being enrolled for its 2018 training intake.As part of strengthening Redefine’s Board governance role, Marc Wainer will be relinquishing the Chairman role during November, to allow for a smooth transition to an independent non-executive Chairman. Marc will continue to be an executive director of Redefine.“We are relentlessly focusing on what matters most to deliver sustained value and truly believe that to prosper over time all stakeholders in our company must benefit,” concludes Konig.EDITOR'S NOTESClick here to view May 2018 Intermin results  

Redefine Properties puts auditor KPMG on notice
04 May 2018

JSE listed diversified Real Estate Investment Trust (REIT) Redefine Properties (JSE:RDF) has announced its decision to place auditors KPMG on notice. Redefine’s board has resolved toterminate its association with KPMG. At the Company’s Annual General Meeting in February 2018, it was proposed that KPMG be re-appointed as the Company’s independent external auditors for the 2018 financial year, on the provisothat “the Audit and Risk Committee actively monitor the outcomes of the investigations underway andtake appropriate action as and when further information becomes available”. Subsequent to the AGM and the successful re-appointment of KPMG, the Board, through the Auditand Risk Committee, thoroughly assessed the continuing and more recent developments as werecommunicated by KPMG and reported on in the media.  Concerns over good governance and ethicscompliance motivated the decision. KPMG’s appointment as external auditors will terminate on conclusion of the audit relating to the 2018financial year, which is expected to be on or about 30 November 2018. Redefine CEO Andrew Konig said, “Redefine’s reputation is everything and our decision was madefor this reason. We will have a new auditor on board for the 2019 financial year.” Redefine CFO Leon Kok said the decision was not taken lightly. “Audit quality, consistency and continuity are of paramount importance to Redefine and we aremindful of the time and effort it takes to onboard new external auditors.  Given the currentcircumstances and in the best interest of all our stakeholders, we felt it appropriate to commence withthis change as soon as possible."  The Board remains satisfied with the real estate experience and technical expertise of KPMG and thedesignated audit partner will accordingly support its continuance as auditors duringthe transition period to assist in a smooth and efficient handover to the new auditors.

Redefine takes Silver at the PRISMs for The Mentorship Challenge with Marc Wainer
25 April 2018

Johannesburg, South Africa, 24 April 2018: In a major recognition, JSE listed diversified Real Estate Investment Trust (REIT) Redefine Properties (JSE: RDF) together with their creative agency BRAND et al, have bagged the Silver in the Sponsorship category at the prestigious PRISM Awards, Africa’s most sought after awards in the public relations industry for The Mentorship Challenge with Marc Wainer.Now in its 20th year, the PRISM Awards are presented to public relations and communication professionals who have successfully incorporated strategy, creativity and professionalism into communication programmes that showcase a successful campaign.The TV show hosted by the inimitable Marc Wainer unpacked the notion of mentorship, matching mentors and mentees in a remarkable partnership.Considered as one of the most influential voices of his era in the property sector, Marc encouraged, cajoled and dared captains of the industry on the show to pledge hours to guide and shape the future of many young minds waiting to break the mould.“The experience has been fulfilling as we have seen the progress and development of the mentees made over the past few months. This accolade would not have been possible without the pledges by the mentors whose efforts have laid the foundation of many success stories you will hear tomorrow,” says added Marc Wainer, host, The Mentorship Challenge.To date the show has banked 4444 hours from the likes of Grace Harding, CEO, Ocean Basket, entrepreneur Ntando Kubheka, Rene Otto, CEO, MiWay, Judge Bernard Ngoepe, singer Lira, Mike Coppin, Co-Founder, Fruit & Veg City, Nella Qata, Co-Founder, Yabasha Energy, Lebo Gunguluza, Executive Chairman, Gem Group of Companies, Yoni Titi, MD, Human Captial amongst others.Acknowledging the award, Andrew Konig, CEO, Redefine Properties said, “Mentoring can be both fulfilling and humbling. We are honored to be recognised for our efforts.”“We believe that, in our socio-economic climate, the show was particularly relevant given the unemployment challenge, especially amongst the youth, in South Africa. In The Mentorship Challenge we found an innovative way to make a real difference in people’s lives, and demonstrates our commitment to our country and its future leaders. Mentorship serves as a guiding hand out of poverty to success – securing a better and stronger future for South Africa.”

Solar powers Redefine’s sustainability efforts - Wins Gold at SAFMA 2018 for solar PV technology implementation
03 April 2018

Johannesburg, South Africa, March 2018: JSE-listed diversified real estate investment trust Redefine Properties’ (JSE: RDF) strategy on solar energy is delivering cost efficiencies across the business and improving performance on key sustainability metrics. Redefine’s total installed solar photovoltaic (PV) fleet will produce approximately 35 754 600 kWh (kilowatt hour) of solar power per annum when fully operational.“This equates to an indicative saving of 32 819 tCO2 e which is roughly equal to 12 million litres of diesel combusted. If offset against Redefine’s total scope 2 carbon emissions of 46 761 tCO2 e in 2017, it is a 70% reduction, assuming a like-for-like portfolio of properties. Renewable energy is a major point in sustainability projects and besides the financial returns that accrue from these efforts, it is clean economy on the roof, says Ilse Swanepoel, Head of Utilities at Redefine Properties.Redefine’s scope 2 carbon emissions are essentially calculated as electricity consumption not recovered from tenants.Last year, 9% of electricity consumed at Alberton Mall, Boulders, 90 Grayston, 90 Rivonia, Black River Park, Observatory Business Park, Wonderboom Junction, Wembley and East Rand Mall came from renewable energy.Redefine owns and manages some of the country’s major retail, office and industrial parks including the celebrated Black River Office Park in Cape Town. Black River Office Park is the first office precinct in South Africa to receive Green Building Council of South Africa (GBCSA) certified Green Star existing building ratings for all of its eight buildings, with a combined 75,000sqm of office space.Last year, Redefine rolled out a series of rooftop solar PV projects bringing its total installed capacity to 7.8 MWp. Once the power plants come on stream over the next 18 months, its total installed capacity will grow to 22 MWp. To date 4.2MWp of additional capacity has already come on stream delivering approximately 6 373 500 kWh annually.Redefine Properties was recognised by the South African Facilities Management Association (SAFMA) at its recently concluded awards gala and received Gold for this technology implementationSome of the key assets where Redefine has already installed rooftop solar PV plants include Langeberg Mall (Mossel Bay), Boulders Shopping Centre (Midrand), Centurion Lifestyle Centre (Centurion), Stoneridge Centre (Edenvale), East Rand Mall (Boksburg), Matlosana Mall (Klerksdorp), Moreleta Plaza and Wonderboom Junction in Pretoria.“We believe in making sustainability integral to our daily operations for as much economic reasons as environmental and are proud to be the recipient of this award,” says Ms Swanepoel.The total cost savings achieved from existing plants and plants commissioned during the course of the year will be over R32 million per annum.Given the increasing significance of sustainability issues, Redefine also completed an additional 2600 smart meter installations, achieved 43 Green Star ratings for buildings across its portfolio amongst which a recently completed project certifying 20 of its existing office buildings for Green Star SA ratings.Solar energy currently represents the cheapest and most sustainable way to generate renewable electricity. Besides producing no emissions and being silent, the panels furthermore shield large amounts of roof space from direct sun, leaving it cooler and further lowering energy consumption. In addition, technologies to further sustainable smart micro-grids such as efficient and cost-effective energy storage solutions is well within our sights to further enhance the benefits of our Solar PV plants.“Solar is no longer niche and is a well-entrenched renewable energy source underpinning the achievement of green-building goals. Demand has grown in recent years, with many large blue chip tenants prioritising their own sustainability efforts, expecting the developer to dovetail and help achieve their objectives,” adds Swanepoel. Besides tenants, Redefine’s strategic intent is to make its properties attractive for both shoppers and employees by locating new projects in close proximity to public transport directly reducing the impact on environment. Rosebank Link for example has a direct, convenient and safe access to the Gautrain Station through a ground level landscaped pedestrianised thoroughfare.Redefine has been an index component of the Dow Jones Sustainability Index for over four years now. Furthermore Redefine also participates in the Global Real Estate Sustainability Benchmark (GRESB). In 2017, it received an A+ rating for disclosure, well above the global average of a C rating.GRESB asses how companies perform on environmental, social, and governance (ESG) indicators such as energy and water consumption, carbon emissions, employee satisfaction, health and safety, and the supply chain. 

Construction on mixed-use project Loftus Park in Pretoria nears completion
27 March 2018

Johannesburg, South Africa – 14 March 2018: The first phase of Loftus Park, a new mixed-use precinct currently being developed by JSE-listed diversified Real Estate Investment Trust (REIT) Redefine Properties’ (JSE: RDF) together with Abland, one of South Africa’s top property development companies is nearing completion. Phase One includes approximately 34 000 m 2 of A-grade office space, a premium gym, open air piazza with restaurants and a convenience retail offering. A new 152 room hotel by Marriott will alsodebut at the site.Located within walking distance from the University of Pretoria and the Pretoria Boys & Girls High Schools, the newly development precinct provides an integrated work and play environment in what will be a market defining mixed use concept.The retail component will be anchored by well-known brands like Checkers and Dis-Chem amongst others while Virgin Active will open a premium level health club at Loftus Park.The precinct lies within shadow’s length of the iconic Loftus Versfeld stadium, is centrally located, enjoys good access and is in the epicentre of Pretoria’s key suburb, Arcadia. With the Gautrain bus stop adjacent to the precinct, Loftus Park connects seamlessly to Centurion, Sandton, Rosebank and OR Tambo International Airport via Hatfield. “The precinct reflects our proven track record of creating bespoke communities that focus on connectivity, walkability and green spaces. Our investment in enhancing access to the Gautrain network was the final piece of puzzle that is going to unlock the true potential of the development,” says Pieter Strydom, Commercial Asset Manager, Redefine Properties.The precinct will be accredited as a 4-Star Green Star Building.“Abland worked closely with Redefine Properties to bring this unique development to life and will set a new standard for quality mixed use precincts in the node,” says Grant Silverman, Marketing Director, Abland.Loftus Park also enjoys excellent proximity to a vast number of embassies, the Union Buildings and museums. Phase Two, which will add another 7 600 m 2 to the development will see the inclusion of a hospital on the precinct’s footprint as well as 13 000 m 2 of office space in Phase Three. “Loftus Park offers tenants a unique work and play environment, a one stop avenue from convenience shopping to schooling as well as hosting unparalleled on-site amenities. The mixed-use precinct is ideally located to ignite the greater node around it,” adds Strydom.“The proximity of the precinct to the stadium will also energise retail and restaurants on game days as well as provide additional parking.”  “The precinct is a rare opportunity for tenants to acquire office space in one of Pretoria’s upcoming nodes. We are seeing robust interest given the attractive dynamics of Loftus Park and corporates can benefit from the unrivalled amenities including excellent linkages via the Gautrain feeder bus,” says Strydom in conclusion. 

Redefine refines offshore structure, bolsters liquidity with R3.7 billion sale of Cromwell stake in Australia
07 March 2018

Johannesburg – 7 March 2018: JSE-listed diversified Real Estate Investment Trust (REIT) Redefine Properties (JSE: RDF) has bolstered its liquidity and began a process to refine its international holdings following an agreement to sell a 19.5% stake in Australia-listed Cromwell to Singapore-based ARA Asset Management Limited.“This deal ticks a number of boxes for Redefine, which supports our mission to create sustained value for stakeholders. We create capital efficiency, refine our international holdings, reduce debt and have a lot of funding capacity should another investment opportunity arise,” says Redefine CEO Andrew Konig.Operating in a constrained and costly capital environment, recycling of capital has become a prominent feature of Redefine's funding strategy to efficiently source capital and improve credit metrics.“To sustain value creation for all stakeholders Redefine seeks to optimize its allocation of capital through active asset management. The sale of the majority holding in Cromwell significantly advances these strategic objectives,” says Konig.The deal is still subject to FIRB (Foreign Investment Review Board) approval, and following the sale Redefine will retain 60m shares, or 3.09% of Cromwell securities in issue, offering it an opportunity to benefit from future pipeline deals in Australia.Brisbane-based Cromwell is a real estate fund manager listed on the Australian Securities Exchange and Konig said he only has the highest regard for the management of Cromwell in what he says “has been a fantastic partnership over the past ten years”.“All our offshore assets are actively managed to create sustained value for stakeholders and are therefore under constant review. When offers come through we critically evaluate the long-term value creation and in this case we saw an opportunity to optimise capital sourcing and the allocation of capital, while lowering debt,” says Konig.The deal forms part of the process of refining Redefine’s international holdings in various investments.Redefine has grown its offshore footprint significantly over the last six years, with one of those investments being a 23% stake in Cromwell Property Group in Australia. A R5 billion investment into Echo Polska Properties in Poland in 2016 and more recently a strategic 25% stake in a 692 million euro retail portfolio of 28 quality, established and well located assets across Poland further diversified rand hedge earnings.Konig says the Cromwell sale is “investor positive from a number of respects, most notably from a liquidity point of view and is balance sheet positive on the loan to value front”.As at 31 August 2017, the net asset value of Redefine’s total investment in Cromwell was AUD475 668 093 or R4 889 868 000. The proceeds on disposal of the sold Cromwell securities is AUD405 865 792 (AUD1.05 per share) or R3 725 847 971 and Redefine will retain 60 million Cromwell securities, which has a current market value of AUD60 600 000 or R556 308 000.  For the financial year ended 31 August 2017, Redefine received dividends of R380 069 000 in respect of its investment in Cromwell. “We will sell most of the holding and for us, it is about optimising capital efficiency while still benefiting from future distributions and the redevelopment of certain quality assets in Australia,” says Konig.Included among these will be the completion of North Point, which is in the process of being redeveloped and is anticipated to be completed sometime in the first half of 2018.“Our broader strategy remains growing our local portfolio while targeting a diversified stream of revenue in offshore jurisdictions with growth potential,” concludes Konig.

Redefine expands offshore presence with strategic stake in 1 billion euro, 28 property Polish retail portfolio
06 December 2017

Johannesburg – 6 December 2017: JSE-listed diversified Real Estate Investment Trust (REIT) Redefine Properties (JSE: RDF) continues to advance its geographic diversification strategy with a strategic 25% stake in a 1 billion euro retail portfolio of 28 quality, established and well located assets across Poland.Key locations in the portfolio stretch from Warsaw to growing regions across the country like Krakow and Zabrze. The 28 retail properties are comprised of 9 leading mid-market shopping centres anchored by Auchan Group hypermarkets, 4 smaller hypermarket anchored big-box retail centres, 12 standalone hypermarkets with small line-shop retail components and 3 standalone DIY stores. France's Auchan is one of the world's principal distribution groups with a popular presence in a growth market like Poland.  A variety of international and domestic brands like MediaMarkt, TK Maxx and H&M count among the other blue chip tenants in the portfolio.Pimco and Oaktree Capital Management, each holding 37.5% of the consortium, have teamed up with Redefine to purchase the prime properties from a partnership of investors managed by Apollo-Rida, a pioneer of the real estate market in Poland. Redefine's executive chairman, Marc Wainer says the deal presents Redefine with an opportunity for above-market returns and value-add opportunities. Redefine anticipates a pre-tax return on equity in the region of 15%."I am excited about the growth potential beyond the initial investment horizon. While this asset deal transaction is accretive to our earnings over 3-5 years from both an income and trading point of view, it also ushers in long-term growth and value-add potential," he says.Value-add opportunities include the redevelopment/extension of around 56,000m? of the portfolio.  The 25 Auchan leases represent approximately 35% of their total number of stores in Poland and provides a strong negotiation position for the ultimate renewal of the leases. Initially the portfolio was developed by affiliates of Metro AG and sold to a JV between Rida and Ares in 2003. Metro AG and the then purchasers concluded a triple net ?master lease' over the portfolio, which expires in April 2024, which provides a secure income stream."This is a great income play, with triple net blue chip anchor tenants, Auchan and OBI, comprising over 65% of the gross lettable area, while the rent review of the head lease is estimated at 6% in 2019," says Wainer.Redefine's equity contribution of 58 million euros will be funded from completed local asset sales, so it will not need to raise additional capital.A key feature of the deal is the onward sale of 12 earmarked properties to Echo Polska Properties in three annual tranches (once income generation is stabilised) with the first tranche to be acquired by them as part of the initial acquisition. EPP is dual listed on the Luxembourg Stock Exchange and the JSE and of which Redefine owns 39.6%.Redefine remains confident in the outlook for Poland's retail sector, which continues to be buoyed by stellar sales."There are solid fundamentals in place in this market, driven by very strong retail sales growth of 8% and inflation of about 1%. So the macro environment is very solid as employment levels are high and consumers have low levels of household debt," says Redefine CEO Andrew Konig.Redefine lifted its full year distribution 7% to 92 cents per share for the full year to end August 2017, despite challenging local conditions."Our diversified asset platform has been structured to cope in an environment of prolonged uncertainty and low growth. Quality offshore acquisitions and an astute, investor-driven strategy continue to assist us to sustain value and drive growth for all our stakeholders," concludes Konig.

Redefine lifts full year distribution 7% to 92 cents a share
06 November 2017

Johannesburg – 6 November 2017: JSE-listed diversified Real Estate Investment Trust (REIT) Redefine Properties (JSE: RDF) has reported a solid  performance for the full year to end August 2017, after lifting full year distribution 7% to 92 cents per share.Despite challenging operating conditions and general economic uncertainty, distributable income showed significant growth of 22.8% as a number of substantial quality acquisitions in recent years delivered sustained value to stakeholders."Our diversified asset platform has been structured to cope in an environment of prolonged uncertainty and low growth. Reducing leasing risk is very important in the current climate and we have also been investing strategically in what has been a busy year," says Redefine CEO Andrew Konig.Redefine, which stood out as one of the most active dealmakers in its sector during the year, has continued to grow and improve the quality of its local portfolio while targeting a diversified offshore stream of revenue.During the period Redefine continued to enhance its offshore earnings by expanding its presence in Poland and Australia."Locally, developments have been our primary focus in order to expand, protect and improve existing assets that are well located, with projects totalling R3.2 billion completed during the year," adds Konig.Tenant retention was an impressive 92.6% during the year, from 91.8% during the same period last year. Leases covering 536,310 square metres (FY16: 492 126m?) were renewed during the year at an average rental increase of 2.9% (FY16: 3.3%)."In a very competitive market tenant retention ranks supreme - high retention rates are absolutely critical in this environment," says Konig.Net arrears increased to R67.9million (FY16: 39.8 million) during the period, representing 7.5% (FY16: 6.3%) of gross monthly rental, largely due to the R13 billion Pivotal acquisition.Redefine has focused on optimising capital as the cost of debt crept upwards following South Africa's credit downgrade to sub-investment grade in April."Recycling of assets has been important to secure liquidity to fund expansion - we generated R3.5 billion in this financial period from asset disposals and deployed this into assets showing better long term growth prospects," says Konig. Notably, R5.2 billion of development is in progress and will still unfold in terms of expansion, growth and protection of existing assets. Developments in progress and recently completed include the Loftus mixed-use development (Interest: 50.0%) and the Kyalami Corner Shopping Centre which opened for trading in April 2017 (Interest: 80.0%) with a total project cost of R1.2 billion, which will add a further 89,123 m? of gross leasable area (GLA). The major land holdings acquired are two industrial sites, Atlantic Hills (Interest: 55%) and S&J Industrial (Interest: 90%).Redefine has, meanwhile, continued to build a diversified offshore footprint and income stream. The company's rand hedge earnings were bolstered by maintaining its 39.5% stake in Poland-focused Echo Polska Properties by investing R860 million in their ?150 million equity raise. It has additional exposure to the UK, Australia and the rest of Africa.Total assets increased markedly during the year with the diversified local property asset platform valued at R68.1 billion from R56.3billion a year ago.  The Group's international real estate investments, valued at R16.0 billion (FY16: R16.3 billion) represented 19.0% (FY16: 22.5%) of the total property asset platform.Financial director Leon Kok says while a potential further ratings downgrade is a major risk to the economy and business confidence in general, Redefine should be able to weather the storm and has hedged 88.7% of its debt and has sufficient liquidity headroom."Our conservative hedging policy on debt and the extension of hedging on our expected foreign income provide certainty going forward from a distribution per share point of view. It implies we are able to withstand undue increases in interest rates and volatility on the currency front," says Kok.A highlight during the year included the sale of a 22.8% stake in Delta Properties to a women-led BEE consortium in a R1.5 billion vendor funded transaction. "Apart from the commercial upside, this deal drives an urgent need to strengthen women and broad-based ownership in the property sector," says Konig.Redefine added to its offshore portfolio after acquiring another attractive development site for student accommodation in Australia, following its 90% equity investment in Journal Student Accommodation Fund and Operations, which is based in Melbourne, Australia.Redefine anticipates the growth in distributable income per share for 2018 to range between 5% to 6%."Relentlessly focusing on what matters most will ensure we stay ahead of the curve," concludes Konig.

Redefine Properties recognised as Top Employer in South Africa by Top Employer Institute
13 October 2017

Johannesburg, South Africa – 13 October 2017: JSE-listed, internationally diversified real estate investment trust Redefine Properties (JSE: RDF) has been officially certified as a Top Employer 2018, for the third consecutive year. The Top Employers Certification Programme recognises the accomplishments of organisations that are providing the highest standards in employee conditions, the result of an independent assessment conducted globally by the Top Employers Institute.Redefine Properties which directly employs 430 people across South Africa was recognised for exceptional employee conditions, excellence in professional development programs and opportunities for career advancement."Being certified as one of the Top Employers in South Africa is a stand out achievement and very important to us. At Redefine, we work hard to foster a values driven work environment, provide growth opportunities for our staff and encourage a workplace that's open and diverse. These efforts have been the building blocks of our success," says Andrew Konig, CEO, Redefine Properties.The Top Employers Institute assessed Redefine Properties' employee development environment based on the following HR topics - talent strategy, workforce planning, on-boarding, learning & development, performance management, leadership development, career & succession management, compensation & benefits and culture.David Plink, CEO at Top Employers Institute adds, "Our comprehensive research concluded that Redefine Properties Limited provides an outstanding employment environment and offers a wide range of creative initiatives, from secondary benefits and working conditions, to performance-management programmes that are well thought out and truly aligned with the culture of their company.""Property is our commodity but people are our business - our key differentiator. As part of our broader stakeholder engagement strategy we strive to be the employer of choice in the real estate sector and be regarded as a company that lives its ethos of "we are not landlords, we are people" in all that we do. Accolades like the Top Employer encourage our leaders to lead better, inspire our teams to perform better and for the company to achieve its vision of being the best in all aspects of what we do," concludes Konig, 

Redefine advocates new concept in office development
27 September 2017

Johannesburg, South Africa – 27 September 2017: JSE-listed, internationally diversified real estate investment trust Redefine Properties (JSE: RDF) is set to start work on a new office development, Advocates, an exclusive address for advocates in the city's most desirable business precinct, Sandton.The R476 million new development is the result of Redefine's extensive experience in fulfilling the space and operational requirements of heavyweight advocates.   The location along the intersection of Pybus and Rivonia, puts the development strategically in the middle of some of the country's biggest blue chip tenants as well as in close proximity to transport links like the Sandton Gautrain station and bus network. Work on the project commenced in early January 2017 and is scheduled for completion during April 2019.The nine storey building will cover an area of 13,500 sqm, featuring an arrival atrium with increased floor to ceiling height and pause areas. Laid out in a L-shape, the two building wings are efficiently planned to allow modularity in space planning, infrastructure and building technologies. The "wings" will be well-lit from two sides with day lightning streaming from the facade."We wanted to build on the blueprint of exacting demands of legal services, and modernise their traditional work experience. Advocates rely on billable client hours, so we created space that meets operational efficiency and client expectations," says Pieter Strydom, Commercial Asset Manager, Redefine Properties.Rich in architectural innovations, green spaces, technological and environmental features, the office development will aim to achieve a four-star GBCSA Green Star rating when completed."With superior access to transit, and world class design, firms will find that the new development complements their own values around sustainability," Strydom adds.As an increasing number of legal firms make their way to South Africa, often the gateway to the burgeoning economic opportunity on the continent, the demand for niche office space is likely to accelerate.According to Law360, Global 20 firms looking to plant a flag in a new country choose South Africa more frequently than anywhere else. SA has emerged as a crucial hub for global players looking to help clients tap into in sub-Saharan Africa. "Our vision was to create a landmark office development tailored to the business of the advocates and embodies the quality which is the hallmark of Redefine's approach to office developments," Strydom says in conclusion.   

Redefine Properties leverages once-off residential opportunity
13 September 2017

Rosebank, South Africa – 12 September 2017: JSE-listed diversified real estate investment trust Redefine Properties, better known for its retail, industrial and office holdings, have commenced on the ZAR426 million residential development Park Central. The residential project will capitalise on its excellent location on Keyes Avenue close to the Gautrain Station in Rosebank.Park Central will house 150 apartments - ranging from one bedroom suites to luxurious full floor penthouses complete with private elevators and separate butler quarters. All apartments boast of floor-to-ceiling windows and double volume ceiling in duplex units. The windows are one of the main elements that have contributed to Park Central's design and offer uninterrupted sweeping views* of the horizon and the city. At 20 storeys, it will be the tallest residential building in the suburb and is expected to be completed during July 2019.Mike Ruttell, Development Director at Redefine Properties says, "The city hasn't seen a residential development that's situated in an environment like this. This is a good example of our agility and ability to leverage opportunities that allow us to create substantial value for our shareholders.""Park Central will offer a lifestyle, not just a home.""This luxury development is a once-off investment and we remain committed to our focus on retail, commercial and industrial properties in South Africa and emerging CEE economies." Park Central underscores the demand for high end luxury accommodation and is situated in the centre of Rosebank, in close proximity to the Gautrain station, Rosebank Mall, a number of office parks and entertainment facilities."We have identified Rosebank as a vital growth node for Redefine and excited for its prospects as a fast developing transit oriented mixed use precinct. We look forward to maximising the suburb's potential," adds Ruttell. Park Central offers a chic urban green lifestyle in the heart of one of the most dynamic and rapidly expanding growth nodes in Johannesburg. The glass tower will feature huge floor to ceiling windows for natural lighting, tastefully fitted kitchens, a selection of quality finishes, concierge services etc.It also features sky gardens which are a unique signature of this iconic building, resort inspired roof top swimming pool, residents' club, gymnasium and gourmet kitchen facility.There is a pent up demand for luxury accommodation in Rosebank, so this residential development is well timed. People increasingly want to live in boutique like hotel setting with all amenities and facilities in a great location, according to Ruttell.The units priced from ZAR1.85 million to ZAR46 million have already generated an enormous amount of interest from a variety of purchasers: business commuters, single professionals, couples and families who want a primary home close to the vibrant business districts of Rosebank and Sandton.The apartments also offer an outstanding buy-to-rent investment opportunity with sound rental returns and excellent prospects for capital growth."This development is a massive vote of confidence for the Rosebank node and the luxury residential property market in Johannesburg," says Ruttell in conclusion. 

New investment into Melbourne student market, sale of Delta shares keep Redefine on course for healthy growth
10 August 2017

We continue to build on our exceptionally diversified and quality property portfolio after acquiring another attractive development site for student accommodation in Australia. Furthermore, we have also sold our 22.8% stake in Delta Properties to a women-led BEE consortium in a R1.45 billion vendor funded transaction.While we managed to facilitate the sale of what is an illiquid Delta counter in a single transaction, locking in capital value, this transaction achieves far more, as it ties in with our own transformation initiatives to support the development of female leaders in the sector, while also boosting broader empowerment.  Phumzile Langeni, a non-executive director of Redefine, is amongst the women participants in the BEE consortium.As regards our student accommodation strategy, we already have a A$139 million development underway in Melbourne catering for 804 beds, while the new site at 500 Swanston Street is very well located in relation to Melbourne University with potential for up to 700 beds.We are very excited about this development, as the market is so undersupplied. A JLL Student Accommodation report, for instance, says while total full-time students in Melbourne is just under 235,000, the existing supply of beds is around 19,200. Development is anticipated to begin in 2018. With a capital uplift potential and return on equity well ahead of offshore funding costs, the investment proposition is really compelling from a total return point of view.We indicated previously we were looking to sell our Delta holding and can now report that we sold our entire holding consisting of 162 million shares at R9 a share - which means we locked in great capital value. Delta had previously acquired 15 government tenanted offices from Redefine in 2015 through the issue of shares to Redefine.These transactions are another example of how we continue to effectively look through and be ahead of the property cycles and develop bespoke solutions to steer through them.It is through strategic approaches such as these that Redefine has managed to establish a solid business foundation and build a pipeline of exciting growth potential despite the current challenges faced by our economy.

Redefine Properties readies prime S&J site for development
26 July 2017

Johannesburg, South Africa – 26 July 2017: JSE-listed diversified real estate investment trust Redefine Properties (JSE: RDF) has announced that one of its largest industrial developments to date, the 1.6 million sqm S&J Industrial Estate in Germiston, is on track, with bulk infrastructure currently being rolled out. The prime site is majority owned by Redefine Properties together with Abland.Redefine Properties has committed R154 million for the bulk infrastructure to date. The S&J Industrial Estate, once part of the larger Simmer & Jack mines, spans over 163 hectares of developable land, located along the N3 highway adjacent to the Geldenhuys interchange. To be developed in a phased manner, the initial phases will all come up neighbouring Gosforth Park. Forming part of the greater bulk services project, construction on the two main roads within the estate has started.  Once complete these roads will unlock 118 hectares of developable land of which approximately 60% will be available for disposal to end users.The development rights secured can accommodate manufacturing, logistics and commercial uses and includes the opportunity for a fuel station as well as a convenience retail centre within the node.S&J will feature urban design that seeks to improve the landscape value of the estate while retaining and celebrating its heritage. Elements like the winding house dating back to the 1950s, left behind by the mine will be incorporated into the aesthetics of the estate.With a focus on logistics and light manufacturing, businesses operating from the new estate will be able to circumvent the congestion that frequently occurs at Gillooly's interchange when traveling from and to Durban Port and inland destinations."The acquisition meets Redefine's strategy of identifying quality property opportunities in desirable nodes, enabling the business to secure strong lease covenants. We have received enquiries for over 380 000sqm in industrial land sales and development. We expect market interest to increase further once the major bulk services and roads, due for completion early in 2018 are established," says Johann Nell, National Asset Manager, Redefine Properties.Located amidst the burgeoning commercial and residential areas of Germiston, Bedford View, Meadowdale and Alberton, the well-connected site once fully developed is set to create over 5000 new jobs as well generate a substantial rates and taxes injection to the Ekurhuleni metro."The project greatly improves the chances of skilled and semi-skilled workers in the immediate area of getting work in the construction as well as logistics sectors," says Jaco Strydom, Project Manager, Abland.The S&J site is registered as a Strategic Urban Development (SUD) project with the City of Ekurhuleni. Under the auspices of SUD, the City will collaborate with registered SUDs at a strategic level to facilitate development."The accessibility and location of the site makes S&J an ideal gateway to the OR Tambo Aerotropolis corridor mooted to attract strategic investments in key economic sectors, including manufacturing and centralised logistics." says Nell. 

Redefine lifts interim distribution 7.5% to 44.82 cents as quality acquisitions, investor-driven strategy offset local economic challenges
08 May 2017

Johannesburg – 08 May 2017: JSE-listed diversified real estate investment trust Redefine Properties has delivered another solid performance after increasing its distribution by 7.5% to 44.82 cents per share for the six months to 28 February 2017.Quality acquisitions and an astute, investor-driven strategy guided the company to steer through the ebbs and tides of ever-changing macro-economic conditions. At 28 February 2017, Redefine's diversified local property portfolio was valued at R67.7 billion (FY2016: R54.7 billion) and the Group's international real estate investments, were valued at R16.4 billion (FY2016: R18.0 billion) - growing in total by R11.4 billion during the period under review."These results come against the backdrop of increased uncertainty driven mainly by political issues playing out ahead of the ANC elective conference. This result predates the recent ratings downgrades, but what they show is that we are fundamentally very well positioned to weather the coming storm," says Redefine CEO Andrew Konig..During the interim period, management's primary domestic portfolio focus was on protecting, expanding and improving existing well-located properties."What really stands out are our solid property fundamentals. We are benefiting now from a strategy adopted some six years back to upgrade the quality and efficiency, as well as  extend the lease maturity profile of our local portfolio and geographically diversify into real estate markets operating in hard currency markets," says Konig..During the period, tenant retention by gross leasable area was 86% from 83% a year earlier. The overall occupancy of the portfolio was 94.5% and a further 205 213 sqm was let across the portfolio from 171 832 sqm in the comparable interim period a year ago. Improved utility management and recoveries increased the property portfolio's operating margin to 82.6%.The company is reaping the rewards of a diversified asset platform. While international investments contributed 22.7% to distributable income, international real estate investments made up 19.5% of property assets."Geographic diversification remains very important as we access stable revenue flows and broaden our funding sources at attractive interest rates.   We have refinanced a significant portion of our international debt over the period at competitive rates, which has been a very big achievement and will stand us in good stead going forward in a very volatile environment," says Konig.., who expects to see the offshore asset contribution to earnings increase even further in the future to around 25%.Redefine broadened its international exposure through expansion into student accommodation in Australia and subsequent to the half year, into Poland by investing a further Euro 59 million in Echo Polska Properties.In one of the largest local property transactions of the year, Redefine acquired all of the shares in property developer and capital growth fund The Pivotal Fund Limited (Pivotal) in a share swap transaction. The acquisition of Pivotal positions Redefine even more competitively in the commercial property sector in line with its strategic intent to become the landlord of choice in sought-after nodes in South Africa."This deal further diversifies our portfolio by investing in high quality assets, while the share swap conserves the use of cash and debt by Redefine," says Konig..Thanks to this acquisition the company acquired 32 Pivotal properties valued at R10.4 billion (including developments in progress and land holdings for future development). The portfolio consists of 17 office, 10 retail and five industrial properties.  In addition to this an 11.8% share in Mara Delta Property Holdings Limited dual listed JSE and listed on the Mauritian Stock Exchange and a 37.1% interest in Nigerian-based Oando Wings Development Limited was also acquired.Furthermore, Redefine acquired a 90% equity investment of R337.9 million in Journal Student Accommodation Fund which is based in Australia and has received development approval for 804 beds at a well-located site in Melbourne. It is estimated that Redefine's total investment will be AUD125 million (R1.2 billion). Development of the site is anticipated to commence during June 2017.Redevelopment projects in the existing portfolio have an approved value of R785.8 million at an average yield of 6.8% and new development projects with an approved value of R4.7 billion at an average yield of 9.4% are in progress.Redefine adheres to a conservative funding strategy. Interest-bearing debt represented 39.8% (from 38.5% at the previous year end) of the value of its property assets at 28 February 2017. The average cost of debt is 7.6% (from 7.7% the previous year) and volatility in debt costs will be mitigated by interest rates that are hedged on 83% of total debt for an average period of 2.6 years."Redefine Properties continues to build an exceptionally diversified and quality property platform. We remain focused on deliberately procuring top quality properties and opportunities across strategic geographic locations - both locally and internationally," says Konig.."While the risk of further ratings downgrades is a real concern, our diversification strategy will continue as we purposefully seek out real estate that is best poised for sustained growth within three key sectors - office, retail and industrial," he concludes. Redefine anticipates its distribution per share for the second half of the 2017 financial year to grow in line with the first half's performance.

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