PROPERTY PORTFOLIO

Bonatla’s property portfolio is undergoing rapid growth and is expanding rapidly within the defined strategic direction set by the board.

Bonatla’s goal is to achieve in the medium term the following investment mix via two listed companies:

  • Property investments  with a market related net income yield in excess of 10%;
  • Property development and trading portfolio with capital growth and trading opportunities with the investment portfolios.

The goal is to achieve diversification through a balanced portfolio with a bias towards a quality investment portfolio, but with significant developmental and trading opportunities.

Bonatla is associated with a major investment and development company in Hong Kong with investments and development projects in Romania, Mauritius, and Belise. The company will be listed on the London and Hong Kong Stock Exchanges by the end of 2011.

Investment Strategy

  • Acquisition of property assets that will yield low risk and above average returns.
  • To be achieved by acquiring properties that have upside potential value and performance enhancements through development of spare bulk and other rights.
  • Acquisition of properties that will provide steady income and are substantially let to sound tenants.
  • Acquisition of properties that have trading potential.
  • Acquisition of properties that have limited exposure to financial risk and interest rate fluctuations.
  • Disposal of properties from time to time where such disposals will increase the total return performance of the division, or reduce risk.

Investment Criteria

The property portfolio objective is to invest in properties which:

  • provide sustainable cash flow from rental income,
  • are substantially let to end users,
  • have low maintenance requirements,
  • are of a sufficiently high quality to attract quality long term tenants,
  • speculative investments will not be contemplated,
  • are subject to leases which provide secure covenants with staggered expiry dates thus minimising the risk of significant vacancies in any single financial year,
  • are subject to leases which provide for the recovery of operating costs from the tenants so that the growth in net income yield is not eroded by inflationary pressures,
  • have potential for income and capital growth,
  • are let to commercial, industrial, retail and mixed use tenants,
  • are well situated in terms of micro-locations within specific growing industrial retail office and residential areas with good accessibility, and good infrastructure in growing nodes, initially in Gauteng, Kwa Zulu Natal and Cape Town.

 

The investment strategy will be flexible enough to recognise and take into account the accelerating socio-economic changes in our country.

 

 

 

 

[Home] [Profile] [Portfolio] [Local] [Foreign] [Financial] [Governance] [Press] [SENS] [Subsidiaries] [Calendar] [Contacts] [PAIA] [AGM Oct  14]