Portfolio Overview

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The SA Corporate portfolio is focused on industrial, retail, commercial and inner-city assets, primarily located in the major metropolitan centres of South Africa. The Company invests in quality industrial buildings and retail assets either located in dominant nodes or offering sustainable demand from shoppers and tenants. Inner-city developments will be selected in dominant nodes, close to transport hubs and in areas with rapid urbanisation patterns.

Sectoral analysis at 31 December 2015

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The Company has a broad range of tenants, with a predominance of A-grade, national tenants, which reduces the risk in the portfolio.

Tenant grading by GLA

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The Company has an attractive rental escalation profile, which bodes well for sustained growth in distributions.

Contracted rental escalation profile at 31 December 2015

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Group lease expiry – Traditional portfolio

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Group lease expiry – AFHCO Retail / Commercial

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Vacancy profile

Vacancy profile – % of gross Rental (traditional portfolio)

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Overall vacancies have reduced persistently across the last three reporting periods. The Company’s industrial vacancies remain well below the sector average. Commercial vacancies improved as a result of the acquisition of a premium built, fully let office building in Sandton, improved tenant retentions and divestment from largely vacant B to C grade office properties.

Vacancy profile – % of gross Rental (AFHCO)

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Vacancy profile – % of GLA (traditional portfolio)

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Vacancy profile – % of GLA (AFHCO)

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Distribution growth

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Inner-city Portfolio

SA Corporate believes inner-city property investment as an asset class represents a compelling investment opportunity. SA Corporate acquired AFHCO Holdings Proprietary Limited (AFHCO) in 2014 to gain entry into this under represented asset class.

The AFHCO Group, founded in 1996, is a leading investor, developer, and manager of affordable housing and commercial property in the Johannesburg inner-city. The AFHCO platform is arguably the most attractive JHB inner-city CBD residential portfolio, offering scale, quality and diversity.

Location of AFHCO property portfolio

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AFHCO currently owns 44 buildings in the Johannesburg inner-city, representing over 3 296 residential rental apartments and about 170 060m² of retail, commercial and light industrial space, with a total value of some R1.8 billion.

AFHCO has a range of exciting developments that should add significant value over the long term:

AFHCO developments

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AFHCO Development Pipeline

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Zambian Portfolio

SA Corporate acquired, effective 1 November 2015, 50% of the shares and claims from the shareholders of the Casilli group of companies ("Casilli Group") holding the three properties known as: East Park Mall; Acacia Office Park; and Jacaranda Mall; located in Zambia.

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