ANNEXURE A PROPERTY ENTITY INVESTORS REPORT - Heartwood ...
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ANNEXURE A PROPERTY ENTITY INVESTORS REPORT
PROPERTY ENTITY INVESTORS REPORT
Objectives, investment policy and main strategy
Heartwood Properties develops high quality sustainable buildings
underpinned by solid property fundamentals to achieve superior long
term returns for our shareholders.
Heartwood Properties has defined its strategy and business model to:
service businesses operating in the
medium to large owner-managed sector;
businesses that require warehousing
or office space; and/or
may be looking to expand their operations.
For a summarised market outlook incorporating the
effects of COVID-19, please refer to Note 11 of the
Directors’ Report in the Financial Statements.
www.heartwoodproperties.co.za
KEY PERFORMANCE METRICS
LOAN TO VALUE RATIO
51%
51%
49%
48%
47%
46%
45%
44%
2018 2019 2020
The Heartwood Properties Group’s Loan to Value ratio has increased from 45% at
February 2019 to 51% at Feb 2020. This is due to the Soleil project which had a
portion allocated as inventory at year end (carried at cost as opposed to fair value)
and was valued at % of completion. Also included in the ratio is an access facility
which enables the Group to utilise the borrowings facility for spare cash resources.
NET ASSET VALUE PER SHARE
R0,72
R0,70 R0,71
R0,68
R0,66
R0,64 R0,65
R0,62
R0,60
R0,60
R0,58
R0,56
R0,54
2018 2019 2020
www.heartwoodproperties.co.za
PORTFOLIO VALUE
R 250
R204,974,180*
R 200
R157,146,904
R 150
RAND ‘MILLION
R121,252,817
R 100
R 50
R-
2018 2019 2020
*INCL. INVENTORY
NET ASSET VALUE
R 100
R91,062,914
R90
R76,070,205
R80
R70
RAND ‘MILLION
R59,896,646
R60
R50
R40
R30
R20
R10
R-
2018 2019 2020
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DETAILS AND EXPERIENCE OF THE DIRECTORS
OUR TEAM
JOHN WHALL KOBA DUMAS
CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER
John was the Financial Director Koba qualifed as a Chartered
of Group Five Construction for a Accountant in 2003. She
number of years, before moving spent her early audit career at
into the Property Development the BDO Group, both in Cape
Division. He has twenty years of Town and San Francisco. She
property development experience later joined Business Partners
– at Group Five and then in his own as a Portfolio Manager, with
business working with Montagu clients in the commercial
Property Group and other property, manufacturing and
partners. John has built numerous retail sectors.
A grade commercial and industrial
developments in Gauteng and the
Western Cape.
ANDREW UTTERSON JULIAN SCHER
EXECUTIVE DIRECTOR CHAIRMAN, INDEPENDENT
NON-EXECUTIVE DIRECTOR
Andrew has 25 years business Julian graduated with a B.Comm
experience and in 2005 co- LLB from the University of the
founded The Business Centre Witwatersrand, Johannesburg,
Group. Andrew served as CEO and is the founding partner
of The Business Centre Group and senior director of Strauss
and has extensive experience Scher Attorneys.
in property acquisitions,
property development, property Founded in 1994, Strauss Scher
management, lease negotiation Attorneys is a boutique legal
and building design. In 2017 he practice, specialising in all aspects
successfully negotiated the sale of real estate, with a particular
of the entire operating division of focus on property development.
the business to the world industry Julian hosted the legal show on
leaders. Andrew is passionate Radio 702 for many years and
about property and a self- remains one of their regular
confessed lover of beautiful and contributing Experts.
contemporary architecture.
MARTIN EVANS PETER GENT
INDEPENDENT NON-EXECUTIVE INDEPENDENT NON-
DIRECTOR EXECUTIVE DIRECTOR
Martin has been involved in
Peter holds a B.Sc Mining
the property industry for over
Engineering degree from the
30 years. Martin worked for
University of the Witwatersrand,
a leading developer prior to
Johannesburg, an MBA degree
forming his own company, Brydens
from the University of Michigan
Property Group, with a partner.
(USA), and attended an Advanced
Together they have built numerous
Management Programme at
A grade commercial developments
INSEAD, Fontainbleau, France.
in Gauteng.
Peter is currently an independent
management consultant whose
clients have included the FirstRand
Empowerment Foundation, AEE
BERNARD SEEFF Power Ventures and the Columba
Leadership Trust. Prior to becoming
INDEPENDENT NON-EXECUTIVE an independent consultant, he was
DIRECTOR the Chief Operating Officer and
a member of the Management
Bernard holds a Master’s degree Board of Rand Merchant Bank for
in Industrial Engineering and a 7 years. Other positions he held
Higher Diploma in Computer at RMB were Head of Project,
Science from the University of the Structured Trade and Commodity
Witwatersrand, Johannesburg, Finance and Head of Project and
as well as an MBA degree from Infrastructure Finance. Peter was
the University of California in Los also a director for First National
Angeles (UCLA). Bank (Corporate and Investment
Banking Group). He is currently
Bernard has served as director a director of FNB Zambia, where
on numerous company boards, he chairs the renumeration sub-
specialising in property ownership committee and sits on the risk sub-
and management. Bernard was committee of the Board.
the 2012-13 International Chair for
the World Presidents’ Organization
(WPO), which is part of the
Young Presidents’ Organization
international network of 19,000
company Presidents. He still serves
as a member today.
HEARTWOOD PROPERTIES
HEARTWOOD PROPERTIES AT A GLANCE
NUMBER OF PROPERTIES 7
GLA
R205million
PORTFOLIO VALUE
(including inventory)
WEIGHTED AVERAGE LEASE EXPIRY (“WALE”) 5,05 years
35%
AVERAGE PROPERTY VALUATION PER M² R17 149 m²
65%
AVERAGE ESCALATIONS 7,85%
GROSS AVERAGE YIELD 10%
COMMERCIAL WAREHOUSE
OCCUPANCY RATE 100%
RENTABLE AREA (“GLA”) 11 337
REVENUE
27%
GAUTENG
73%
COMMERCIAL WAREHOUSE
WESTERN CAPE
In the process
of identifying TENANT
opportunities
9%
28%
63%
LARGE MEDIUM SMALL
www.heartwoodproperties.co.zaMARKET
LOAN
VALUE AS AT COMPLE- TENANT MAJOR
BUILDING LOCATION SECTOR GLA VACANCY YIELD ESCALATION TO VALUE WALE
29 FEB 2020 TION DATE PROFILE TENANT
RATIO
*NOTE 1
Willow Wood
Fourways,
Office Park R58 800 000 Commercial Dec 2012 3 194 A 0% 11% 7,50% Spaces 44% 6,75
Gauteng
Block A
www.heartwoodproperties.co.za
Willow Wood
Fourways, Multi
Office Park R17 600 000 Commercial Sept 2017 1 029 C 0% 10% 7% - 8.5% 44% 0,70
Gauteng Tenanted
Block B
Willow Wood
Fourways, Crominet
Office Park R20 400 000 Commercial Dec 2013 1 016 B 0% 10% 5% 44% 1,58
Gauteng Mining
Block C
Willow Wood
Fourways, Multi
Office Park R34 900 000 Commercial Mar 2019 1 659 C 0% 8% 8% 44% 3,08
Gauteng Tenanted
Block D
Erf 20, Lyme Fourways, Multi
R29 818 480 Commercial Mar 2020 1 167 B 0% 9% 8% - 4,56
Park Gauteng Tenanted
Lanseria
Lanseria Erf Corporate The Media
R17 500 000 Warehouse Sept 2015 1 951 C 0% 11% 8% 65% 5,67
661 Estate, Connection
Gauteng
Lanseria
Lanseria Erf Corporate D4
R15 400 000 Warehouse Nov 2018 1 321 C 0% 10% 8% 64% 8,82
643 Estate, Technologies
Gauteng
Note 1 – All the Group’s properties are revalued annually by independent valuers. Refer Note 4 – Investment Property in the Financial Statements for details on valuation
methodology and assumptions. Physical inspections were performed during March 2020. The Company is not aware of any town planning restrictions, qualifications in respect of
the valuations, statutory contraventions or options over the properties.
Note 2 - Tenant Profile definitions:
A. Large national tenants, large listed tenants, government and major franchises. “Large” refers to top tier nationals and listed tenants.
“Major” refers to top tier franchises recognised as industry leaders (2 tenants)
B. Medium national tenants, listed tenants, franchises, medium to large professional firms. “Medium to large”
refers to industry leaders in their respective fields (law, accounting and advertising) (3 tenants).
C. Small and medium-sized tenants, non-listed tenants and privately held small to medium-sized businesses include the number
of tenants (14 tenants).TIMELINE
2011 APRIL 2011
Incorporation of
private development
company
2012 DECEMBER 2012
Completion of
Willow Wood Office Park Block
A for the Business Centre
2013 DECEMBER 2013
Completion of Willow Wood
Office Park Block C for
Cronimet SA
2015 SEPTEMBER 2015
Completion of Warehouse and
office for The Media Connection
in Lanseria Corporate Estate
2017 SEPTEMBER 2017
Completion of Willow Wood
Office Park Block B
www.heartwoodproperties.co.za2018 MARCH 2018
Heartwood Properties
Limited listed on the 4AX
Exchange
2018 NOVEMBER 2018
Completion of warehouse
and office for D4 Electrical in
Lanseria Corporate Estate
2019 MARCH 2019
Completion of Willow Wood
Office Park Block D with
Genesys as the anchor tenant
2019 OCTOBER 2019
Investment into Blythswood
Quarter development in
Glasgow, UK
2020 MARCH 2020
Completion of Soleil multi
tenanted Office in Bryanston
www.heartwoodproperties.co.zaHEARTWOOD PROPERTIES LIMITED
Unit 8 Tonquani House, 6 Gardner Williams Avenue Incorporated in the Republic of South Africa
Registration Number: 2017/654253/06
Paardevlei, Somerset West, 7130
ISIN: ZAE400000044
4AX Share Code: 4AHWP
T: +27 (021 035 1744
E: john@heartwoodprop.co.za EXTERNAL ISSUER AGENT:
Pallidus Capital Proprietary Limited
www.heartwoodproperties.co.za
c/o Jacques Botha
jacques@pallidus.co.za
012 880 2490
COMPANY SECRETARY:
Kilgetty Statutory Services Proprietary Limited
c/o Chris Wilson
chris.wilson@kilgetty.co.za
021 417 8754You can also read
