Emira Property Fund has increased its interest in SA Corporate Real Estate and now holds 8.7% of the group’s shares.
Emira said last week that it acquired a further 130.16-million shares in SA Corporate for R400.8m in a series of on-market transactions. It took an initial stake in June when it acquired 99.4-million shares in the JSE-listed real estate investment trust (Reit) for R284.2m.
SA Corporate owns a focused portfolio of quality industrial, retail and residential buildings located primarily in SA’s major metropolitan areas, with a secondary node in Zambia.
Emira has generated liquidity through its disposal programme and considers an investment in SA Corporate to be consistent with its investment strategy of acquiring interests in undervalued, quality assets.
Combining the initial investment in June and the latest transactions, Emira now owns 229.56-million SA Corporate shares.
Since end-June, SA Corporate reported distributable income per share of 14.07c and headline earnings per share of 13.33c. Its net asset value and attributable profit after tax were R11.36bn and R377.3m, respectively.
In a recent operational update for the four months ended July, Emira said it was on track to achieve its objectives for the 2026 financial year.
The group’s commercial portfolio, which comprises directly held local retail, industrial and office properties, performed in line with expectations for the period, it said. Its commercial portfolio saw vacancies improve to 4.6% by gross lettable area from 6.4% in March.
During the period, the fund disposed of one industrial property, HBP Industrial Units, realising gross proceeds of R58.5m. In addition, disposals of two properties, with aggregate gross proceeds of R251m, are unconditional and expected to transfer by December.
Emira’s retail portfolio of 12 properties consists mainly of grocer-anchored neighbourhood and community shopping centres, the largest being Wonderpark, in Karenpark, Pretoria north. Retail vacancies increased to 5.1% from 4.2% in March, it said.
Office vacancies increased to 8.8% from 8.4% in March as the sector’s fundamentals remain depressed, with low demand continuing to limit real rental growth. Emira’s office portfolio comprises 10 properties, the majority of which are P- and A-grade properties.
Industrial vacancies improved to 2% from 7.9%, due to the RTT Group taking back 15,840m² at RTT Acsa Park, which was vacated in the previous financial year. Emira’s 19 industrial properties are split between single-tenant light industrial and warehouse facilities and multi-tenant industrial parks.
The fund’s residential portfolio comprises 2,248 units in Gauteng and Cape Town. The occupancy rate of the portfolio fell to 94.4% from 96.6%.
Sales in the portfolio continued to progress well, with a further 1,097 units transferring, generating total gross proceeds before costs of R652.2m, of which R569.8m had been classified as held for sale at the end of March. A further 289 units, with aggregate gross proceeds of R147.8m, are under contract and are expected to transfer by December 2025.
In its US portfolio of 11 equity investments in grocery-anchored, value-orientated, open-air power centres, vacancies increased to 6.2% from 4.6%, primarily due to the closure of the 5217m² Joann store at Belden Park Crossing after its bankruptcy filing.
Overall, the underlying US portfolio continues to perform in line with expectations, it said.
In August 2025, Emira disposed of its equity interest in University Town Center, realising net proceeds of $14.5m before capital gains tax and branch profits tax.
Emira holds a 45% interest in DL Invest, a Luxembourg-headquartered Polish property company. Through its subsidiaries, the business develops and owns logistics centres and industrial assets, mixed-use/office centres and retail parks across Poland.
As at end-June 2025, the DL Group’s portfolio comprised 39 income-generating properties valued at about €687.5m.
Since end-July, total vacancies across the DL Group’s operating portfolio improved to 2.9% from 3.1% in March.
“The fund is encouraged by DL Invest’s performance over the year, particularly its execution against strategy. The outlook for Poland’s commercial real estate market remains positive, underpinned by a resilient economy, strong investor demand and sector-specific growth drivers, especially in logistics and industrial assets,” Emira said.
“Emira’s investment has created a strong foundation for its strategic partnership with DL Invest, positioning both parties for long-term collaboration and providing the fund with access to potential future opportunities in Poland,” it said.
Emira’s loan-to value ratio is 37.1% compared with 36.3% in March, it said. The group’s shares are up 14% year to date.
Emira is due to release its interim results on November 12.
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