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Fairvest Launches Rosebank Quarter

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Fairvest Launches Rosebank Quarter After R30 Million Transformation Project

JOHANNESBURG, South Africa, JSE-listed real estate investment trust Fairvest Limited has officially launched Rosebank Quarter, a newly refurbished mixed-use commercial property in the heart of Rosebank, the R30 million redevelopment was carried out over two years, aimed at bringing the building in line with the growing quality of the precinct.

The launch marks the culmination of months of construction and design work to reposition the asset as a vibrant commercial hub, offering a refreshed mix of office, retail and lifestyle offerings.

The property has undergone a significant upgrade, including a full exterior overhaul with contemporary cladding and integrated lighting that brings the structure to life after hours. Internally, the entrance has been fully redesigned and now features a scenic lift, while the building’s courtyards have been reworked with water features, new paving, planters and seating areas.

Retail elements have also been given attention, with new shopfronts installed throughout and external food stalls creating a more active, pedestrian-friendly interface. Office spaces inside the building have been refurbished to support modern working environments, while the basement now benefits from digital access control and number plate recognition technology.

Fairvest CEO Darren Wilder said the project reflects the company’s approach to enhancing assets in key urban locations.

“Rosebank Quarter is a strong example of how we reinvest into our portfolio to drive both tenant value and broader precinct upliftment. We’re not just refreshing buildings, we’re strengthening our position in key nodes like Rosebank, where demand for well-located, accessible commercial space continues to grow.”

The asset sits within the fast-evolving Rosebank district, an area that has seen continued growth in both commercial and residential development over the past five years. The redesign of Rosebank Quarter was aimed at meeting this growth with an offering that reflects both the expectations of today’s tenants and the energy of the surrounding neighbourhood.

Founder and Architect at Oblik Architecture and Design, Mary-Lee Nicoloudakis, who developed and oversaw the redesign, said the vision was to create a building that felt cohesive with its environment while offering a new level of finish.

“There was a strong emphasis on giving the building a renewed identity, one that felt authentic to Rosebank’s urban character, but with enough warmth and human scale to make it comfortable and inviting. The use of Art Deco cues, in a modernised way, allowed us to blend heritage and future.”

The building is already seeing strong leasing interest, supported by its upgraded amenities, ample parking and growing footfall in the area. A diverse tenant mix is expected to include cafés, food outlets, and boutique retailers, along with a base of small to mid-sized businesses occupying the office components.

In line with Fairvest’s broader environmental strategy, the company has begun early-stage solar installation on the building and is rolling out smart metering across larger electrical loads to better manage energy usage. These measures form part of its long-term ESG goals, particularly around reducing carbon emissions across its urban asset base.

Today’s launch was attended by project partners, stakeholders and current tenants, many of whom remained operational throughout the refurbishment process.

“The patience and support of our tenants during the construction period has been invaluable,” said Wilder. “It speaks to the strength of the community we’re building here, one that is invested in what Rosebank Quarter can become.”

 

Emira’s beehives are a sweet investment in tomorrow

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This May, pinstripes are out and bee stripes are in. The United Nations has declared 20th of May World Bee Day, providing the perfect opportunity for Emira Property Fund to celebrate the success of its own tiniest, busiest VIP – Very Important Pollinator – tenants.

For the last five years, SA REIT Emira (JSE: EMI) has been quietly putting its weight behind an essential global commodity: bees. During that time, the fund’s littlest property investment has become one of its proudest, with 14 beehives at five of its properties, all abuzz with activity.

As Ulana van Biljon, Chief Operating Officer of Emira, explains, “The beehive project was chosen to highlight the decline of global bee populations, because bees and other pollinators are under serious threat, yet they contribute so much to society, as well as to the biodiversity of our properties. Our hives provide a safe place for honeybees to live and breed.”

According to the United Nations (www.un.org/en/observances/bee-day) over 75% of the world’s food crops – nutrient-dense fruit, vegetables, nuts and seeds – and 35% of global agricultural land depends on animal pollinators. The greatest of these are the 20,000 species of bees worldwide.

In 2020, Emira began installing beehives at eight of its properties in Gauteng and KwaZulu-Natal. Subsequently, three of the properties were sold, so currently Emira has 14 hives across five properties.

“Our bee conservation project is a holistic approach to reducing the impact of environmental degradation, which goes beyond planting trees,” says van Biljon.

The first Emira hives were installed at Knightsbridge office park in the heart of the Bryanston business node, and Hyde Park Lane, a tranquil corporate address in Sandton. These sites were selected, according to van Biljon, “due to their safe site location, the biodiversity of the surrounding landscape and the abundance of flowering plants which provide the nectar flow for the bees to produce honey.”

Both bee and human welfare concerns were carefully considered, she adds, noting that the public live in harmony with bees anyway: there are many natural swarms of bees throughout South African cities. Emira’s beehives are managed in a secure, controlled environment, away from areas of heavy foot traffic and clearly sign-posted, while beekeeping activities take place at night.

The results so far have been sweet: the busy little workers have produced 106kg of honey for the March 2025 harvest from four apiary sites, namely Knightsbridge (19kg), Hyde Park Lane (16kg), Wonderpark (53kg) and Albury Park (18kg). A by-product of the conservation initiative, the honey is harvested after the summer months when the bees produce a surplus.

However, no honey could be harvested from the two hives at One Highveld, as both underwent “absconding” at the same time – absconding being a normal phenomenon within honeybee hives, part of a cycle in which an old queen is replaced with a younger one. Any existing honey was then “stolen” by other honeybees, another natural turn of events.

The honey was shared among Emira staff and tenants, creating awareness of the importance of preserving biodiversity. To the delight of the recipients each harvest tasted unique as bees tend to collect nectar within 3km of their hive. This meant Johannesburg honey was crafted largely from exotic garden ornamentals like jasmine, lavender, rosemary and jacaranda trees. Meanwhile, in Pretoria North – where hives are situated at Wonderpark Shopping Centre – an abundance of indigenous plants, acacias, and grassland flowers created honey with darker, flavourful herbal tannins.

“This biodiversity is vital for healthy ecosystems, which support both human well-being and the economy,” says van Biljon. “Healthy ecosystems form the ecological infrastructure of the country, providing clean air and water, fertile soil and food.”

The bees must have realised they were on to a sweet rent-free deal at Emira: in April 2024, passing bees took up residence in a pylon at Boskruin Shopping Centre, not an ideal location. Once they were safely removed by a beekeeper, catch hives were installed to prevent more unplanned bee incursions. These will capture swarming honeybees, allowing them to be relocated to suitable sites within the Emira portfolio, or to commercial farms within the region. Thus, urban sites remain safe, and honeybee stocks are secured.

As part of Emira’s dedication to best environmental, social and governance (ESG) practices, it has also committed to a “No Net Future Loss” policy, conserving and promoting biodiversity across its portfolio and reducing the company’s impact on the environment.

“The country’s natural ecosystems are threatened by land use change, degradation and invasive alien species,” says van Biljon. “Climate change worsens these threats, but healthy ecosystems offer natural solutions that increase resilience. They protect communities from extreme weather events and enhance natural resources, livelihoods, food security and habitats for animals and plants.”

With the beehive project, Emira is putting the bee firmly into business, living up to its reputation as a truly diversified, balanced real estate investment trust.

Vukile pre-close trading update for year ended 31 March 2025

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Vukile Property Fund closes a transformative year and forecasts accelerating growth

Vukile Property Fund (JSE: VKE), the leading specialist retail real estate investment trust (REIT), delivered a strong pre-close trading update for its financial year ended 31 March 2025, underscoring its dealmaking dexterity, strategic expansion and robust operational delivery. Vukile confirmed it is on track to meet its full-year guidance of 2% to 4% growth in funds from operations (FFO) per share and 6% growth in dividends per share (DPS).

Reflecting strong business momentum and high-quality earnings, Vukile also provided preliminary guidance on FFO and dividend per share growth for FY26 of at least 6%, based on conservative assumptions and without anticipating any need for new equity capital.

The transformative year has been underpinned by strategic execution. Driven by disciplined dealmaking and decisive capital deployment, Vukile’s gross asset value now exceeds R50 billion.

Through its 99.5%-held Spanish subsidiary Castellana Properties, Vukile grew its asset base in Spain and Portugal by nearly 60%. It exited its investment in Lar España at an impressive profit of EUR82 million, swiftly redeploying capital to acquire the iconic Bonaire Shopping Centre in Spain’s Valencia province at a compelling cash-on-cash return of over 8%, avoiding cash drag and securing sustainable earnings from a top-quality asset.

Adding a new engine of growth to its strategy, Vukile entered Portugal with four high-quality retail acquisitions. A fifth deal is well advanced and already fully funded.

All-in-all, the Iberian portfolio grew around 60% over the 12 months, cementing Vukile’s dominant position across two of Europe’s strongest economies − Spain and Portugal. Approximately two-thirds of Vukile’s assets and 60% of earnings are now offshore.

In South Africa, Vukile acquired a 50% stake in Mall of Mthatha (formerly BT Ngebs) in May 2024, where early turnaround performance has exceeded expectations. The mall’s vacancy rate has decreased dramatically from 18% to just 1.8%.

These assets were acquired at a favourable point in the cycle, expanding Vukile’s footprint and growing its Iberian portfolio with strategically aligned, high-performing assets that are delivering strong cash flows with further upside through targeted asset management.

“We’ve come through a phase of explosive growth. Now, we’re focused on integration, optimisation and crystallising value from these assets. Vukile remains open to opportunities but will prioritise deepening value within its current footprint, and for the time being we don’t expect to raise capital,” confirms Laurence Rapp, CEO of Vukile Property Fund.

Operational strength has stood out across Vukile’s portfolio of high-performance, strategically located shopping centres, with limited exposure to new competition and strong pricing power.

In South Africa, like-for-like net property income (NPI) grew 6.4%, vacancies remain below 2%, and 84% of rental reversions were positive or flat.  The portfolio has recorded growth in both sales and footfall. The cost-to-income ratio reduced to 15%, with ongoing progress in solar and water initiatives enhancing sustainability metrics and efficiencies.

In the Iberian portfolio, like-for-like NPI increased by almost 2% and with various value-add projects now complete, significant upward momentum can be expected in the year ahead. Vacancies in both portfolios remain below 2%. Positive rental reversions were a standout 23.6% in Spain and 6.15% in Portugal. Sales grew 4.3% in Spain and 6.7% in Portugal.

“With a well-hedged balance sheet, minimal near-term debt expiries of just 2% maturing in FY26 and strong liquidity, Vukile is closing FY25 in an exceptionally positive position,” says Rapp.

Vukile Property Fund will report results for the full year to 31 March 2025 on 17 June 2025.

 

Emira pre-close operational update ended 30 September 2024

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Shareholders and noteholders are referred to the Fund’s half-year results announcement for the six months ended 30 September 2024 (“interim results”), released on SENS on 13 November 2024. The Company wishes to provide an update to investors regarding the operational performance of its investments.

SA Direct local portfolio

Commercial portfolio

Despite a challenging economic environment, the local commercial portfolio, consisting of retail, industrial, and office properties, has delivered a resilient performance, meeting expectations for the 10 months ended 31 January 2025 (“the period”). Total vacancies across the portfolio increased to 6,8% (by GLA) at the end of January 2025 (September 2024: 3,9%). The increase was primarily due to RTT at RTT Acsa Park reducing their space from 46 673m² to 30 833m² and the impact of disposals over the period. Tenant retention remains a key focus, with 77.5% (by Gross rental) of matured leases being retained. The weighted average total reversions for the period have improved at an overall -4,2% (September 2024: -6,8%).

The Fund’s weighted average lease expiry (“WALE”) at the end of the period remained stable at 2,8 years (September 2024: 2,8 years), while average annual lease escalations remained similar at 6,4% (September 2024: 6,5%).

Collections vs billings for the period were 97.5%

During the period, 26 properties were transferred out of the Fund, generating total gross proceeds of R2.4 billion. These disposals comprised 5 retail properties, 10 office buildings, and 11 industrial parks.

Emira’s experience on the key individual sectors is as follows:

Retail:

Retail vacancies at the end of the period increased slightly to 4,4% (September 2024: 4,2%). The WALE is similar at 3,1 years (September 2024: 3,2 years) and 81,9% (by gross rental) of maturing leases in the period were retained. Total weighted average reversions for the period have improved to -0.9% (September 2024: -4,0%).

Emira’s retail portfolio of 12 properties consist mainly of grocer-anchored neighbourhood and community shopping centres, the largest being Wonderpark, a 91 038m² dominant regional shopping centre located in Karen Park, Pretoria North.

Office:

Office vacancies at the end of the period increased to 9,7% (September 2024: 9,4%). The WALE has improved slightly to 2,6 years (September 2024: 2,5 years) and 57,0% (by gross rental) of maturing leases in the period were retained. Total weighted average reversions for the period have improved to -5,8% (September 2024: -9,6%).

Emira’s office portfolio consists of 10 properties, the majority of which are P- and A-grade properties. The sector’s fundamentals remain depressed, with low demand continuing to limit real rental growth.

Industrial:

Industrial vacancies at the end of the period increased to 7,8% (September 2024: 0,7%) due to RTT at RTT Acsa Park reducing their space requirements. The WALE has decreased to 2,7 years (September 2024: 2,9 years) and 73,2% (by gross rental) of maturing leases in the period were retained. Total weighted average reversions for the period have declined to – 10,8% (September 2024: -7,9%).

Emira’s 21 industrial properties are split between single-tenant light industrial and warehouse facilities and multi-tenant midi- and mini-unit industrial parks.

Residential portfolio

The residential portfolio consists of 3 389 units (September 2024: 3 588) located in Gauteng and Cape Town.

Vacancies across the residential portfolio were 4.0% (by units) as at 31 January 2025 (September 2024: 5,0%), which was higher due to the held-for-sale units, and if these held for sale units are excluded, the vacancies were 2,9%.

Collections vs billings for the period under review were 98,4%.

In line with the Fund’s recycling strategy 386 residential units have transferred during the period, realising gross disposal proceeds of R312,9m.

USA

The US portfolio now comprises 11 equity investments, down from 12 in September 2024, in grocery anchored, value orientated, open air power centres. During the period, Emira and its co-investors successfully completed the sale of San Antonio Crossing, realising gross proceeds of USD28,2m (an 8.87% premium to book value) upon transfer on 18 December 2024. Emira held a 49,50% equity stake in San Antonio Crossing.

As at 31 January 2025, vacancies across the remaining 11 properties had increased to 3,9% (September 2024: 3,5%), mainly due to the bankruptcy of Conn’s (40 120 SF), the home goods retailer at Wheatland Towne Centre. The underlying properties are performing in line with expectations.

DL Invest Group S.A (“DL Invest”)

DL Invest is a Luxembourg-headquartered Polish property company. Through its subsidiaries (collectively the “DL Group”), it develops and holds logistics centres, mixed use/office centres, and retail parks across Poland. Through its internal structure, which includes approximately 230 employees, the DL Group’s business model assumes full implementation of the investment process and actively manages projects as a long-term owner.

Following shareholder approval at the general meeting on 17 March 2025, Emira exercised its Tranche 2 Subscription Option, and on 20 March 2025 subscribed for an additional 113 new B Shares and 113 9% Loan Notes, with each Loan Note linked to a B Share to form a Linked Unit (the “Tranche 2 Subscription”). This increased Emira’s stake to 45% of the total DL Invest shares. The total consideration for the Tranche 2 Subscription was €44.5m, comprising €8.9m for the B Share subscription and €35.6m for the Loan Notes. The Tranche 2 Subscription was funded through a new 5-year Euro debt facility, with a fixed interest rate of 4,71%.

As at 31 December 2024, the DL Group holds a portfolio of 38 properties (excluding land and properties under development) with an estimated value of approximately €670m. This portfolio consists of logistics/industrial properties (67% by value), retail properties (11% by value), and mixed- use properties (22% by value). Additionally, as of the same date, the DL Group owned land and properties under development with a combined carrying value of €182m.

As at the 31 December 2024, total vacancies across the DL Invest portfolio increased to 3,2% (September 2024: 2,0%), while the WALE remained at 5,5 years.

Capital management and liquidity

As at 28 February 2025 the Fund had unutilised debt facilities of R1,09b together with cash-on-hand of R349,2m. This was bolstered in March 2025 by a new 5 year €45m term debt facility from Rand Merchant Bank to fund the DL Invest Tranche 2 Subscription.

The Fund’s loan-to value ratio (“LTV”) decreased to circa 34,1% as at 28 February 2025 (September 2024: 42,0%) because of disposal proceeds received on properties that transferred post 30 September 2024 being used to reduce debt. Following the DL Invest Tranche 2 Subscription the LTV has increased and is expected to close at c. 36% – 37% by 31 March 2025.

Conclusion

The Fund is on track to exceed its objectives for FY25.

Emira expects to release its results for the full year ended 31 March 2025 on Wednesday, 28 May 2025.

The power of co-ownership in international real estate investment

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THOUGHT LEADERSHIP: by Geoff Jennett, CEO of Emira Property Fund

We have long recognised the immense value of collaboration at Emira Property Fund. The real estate industry is traditionally dominated by sole-ownership-centric strategies, but we believe that co-ownership offers a smarter, more risk-adjusted approach to international investing. Our offshore investment journey — first into the United States and then into Poland — has reinforced this belief.

Co-ownership is not merely about shared ownership; it is about shared expertise, shared risk, and shared opportunity. It allows us to leverage the strengths of our partners, navigate local market complexities, protect against the downside and execute deals more effectively than if we were operating alone.

Learning from our US experience

Our entry into the U.S. market was not only a successful investment but an insightful exercise in understanding the true benefits of co-ownership. While practical challenges such as time differences and travel logistics exist when operating in this market, these are minor compared to the strategic advantages we gained.

Had we pursued a direct ownership model, we would have faced significant hurdles, particularly in acquiring quality centres and then the negotiations with funders and major national tenants. The reality is, when a local business leader with long-standing relationships in the market picks up the phone, doors open more readily than they would for an unfamiliar South African investor. Our partners in the U.S. brought these critical relationships to the table, ensuring greater access to opportunities, more effective negotiations and superior deal-making outcomes.

Some may argue that establishing an in-country team could achieve the same effect. However, in an incremental investment strategy like Emira has for our US investments, building such a team too early is costly and inefficient. Rather than assembling a high-salaried team for a relatively small initial portfolio, we opted to partner with an established expert, ensuring cost efficiency, immediate market penetration, and lower initial risk exposure.

Expanding the model to Poland

Having seen the tangible benefits of this strategy in the U.S., we confidently scaled our co-ownership approach in Poland. However, this was not simply a replication of our U.S. strategy; rather, it was an evolution of it.

The Polish opportunity was fundamentally different: rather than acquiring individual assets one by one with in-country partners, we took a stake in an existing company with a substantial portfolio of 37 developed assets. This gave us immediate scale, access to an established management team, and deep-rooted local expertise — all without the lengthy and costly process of building a presence from scratch.

Moreover, Poland presented unique challenges: language barriers, unfamiliar banking relationships, and a tenant landscape we were not well-versed in. Here again, co-ownership proved invaluable. Our partners in Poland have naturally mastered these intricacies, enabling us to function as experienced market players from day one.

The true meaning of collaboration

Many assume collaboration is about working together harmoniously, but in reality, it is about working effectively, even when differences exist. In co-ownership, partners will not always be perfectly aligned in approach, style, or execution. What matters is a shared commitment to the outcome and a structure that enforces true partnership.

At Emira, we firmly believe that for collaboration to be effective, all partners must have genuine skin in the game. This means sharing the risks and rewards equitably. Our structures ensure that if we profit, our partners profit; if we lose, they lose too. This balance creates a powerful incentive for all parties to make sound, strategic and long-term decisions.

Our model is not just theoretical—it is structured into our investments. Our co-ownership agreements ensure that our partners assume at least the same or greater degree of risk as we do. Their commitment is real, tangible, and embedded into the deal structure.

The risk-adjusted return advantage

Beyond the strategic benefits, co-ownership also enhances our risk-adjusted returns. We do not need to take on 100% of an asset’s risk to benefit from its potential upside.

For instance, in the US, our joint ownership of open-air power centres allows us to access non-recourse debt over each asset at favourable interest rates—terms that would have been far less attractive if we had entered as a standalone South African investor. Our partners’ established credibility in the market played a crucial role in securing these financial advantages.

Similarly, in Poland, rather than attempting to outmanoeuvre local specialists, we leveraged their expertise to secure a profitable position in an already successful business. This ensured that our entry was strategic, measured, and positioned for growing success.

The bigger picture: co-ownership as a competitive edge

Some sceptics have questioned why South African funds risk offshore opportunities rather than focusing exclusively on domestic investments. For Emira, the answer is simple: We are not attempting to outsmart investors native to foreign markets — we are partnering with them.

By aligning ourselves with on-the-ground specialists, we are not only reducing risk but also improving our access to deals, market knowledge, and operational efficiency. Rather than adopting a rigid, one-size-fits-all investment approach, we tailor each deal to the opportunity at hand.

 The strategic advantage

Co-ownership is not about compromise; it is about optimisation. It is about recognising that success in global markets requires humility—acknowledging that local expertise is an invaluable asset and that working collaboratively yields superior results.

At Emira, we take pride in our collaborative mindset — not just in our international investments but also in our domestic market. Our partnerships investing in Enyuka, Transcend, and The Bolton office-to-residential conversion are just a few examples of how we have successfully embraced co-ownership.

As we continue expanding our international footprint in the US and Poland, our co-ownership model will remain a cornerstone of our strategy. It reduces risk, enhances returns, and unlocks greater expertise. Doing business this way is also more enjoyable. When like-minded people who are committed to the upside, yet all face the downside consequences, gather around the table, you arrive at better solutions. It makes the journey not just more successful but also more rewarding and fun.

The real estate industry is full of players determined to control every aspect of their investments. At Emira, we believe in a different approach. We do not need to own everything outright to achieve success; we need to own the right pieces, in the right way, with the right partners.

And that, we have found, makes all the difference.

 

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