The residential sector, and specifically rental residential is hugely under-represented in the South African listed property sector. In developed economies the residential sector is much more prominent in the listed property sectors with comparatively massive funds (REITS) acknowledged for their defensive nature and trading at very competitive yields compared to other sectors. Indluplace was the first rental residential REIT to list in South Africa.
The world-wide Covid pandemic, subsequent lockdown regulations and a constraint economy had a negative impact on the company’s customers, its tenants. These events have however highlighted the importance of the rental housing sector with people being forced to work from home (and realising that it can be, in large part effective). There is still a shortage of well-priced, well managed rental housing in South Africa as evidenced by the relatively low vacancy rates in this market across various rental levels and income groups. There is also good demand for well located, affordable student accommodation.
Indluplace listed in June 2015 and is the largest REIT focused on residential properties. The portfolio has increased substantially since listing and the company owned over 10 000 units valued at over R4,3 billion in 2019. Following this rapid growth period the company is now in a process of refining its portfolio and is disposing of its portfolio of smaller properties, situated in low-growth areas. Currently the portfolio consists of 124 properties with 9 168 residential units and about 16 058 m² of retail area. The properties are mainly located in Gauteng, but with representation in Mpumalanga, Kwazulu Natal and the Free State. Indluplace intends to resume with growing a national portfolio by focusing on acquiring properties and portfolios that provide income on day of acquisition.
Our investments in rental residential properties focus on providing value for money housing, where a proven demand exists, generally in larger urban centres close to work opportunities and transport infrastructure. Other residential forms such as student housing or higher income housing is evaluated on a case by case basis. Indluplace offers an exit for developers or owners of residential stock or portfolios.
Indluplace Property Services (Pty) Ltd is a wholly owned subsidiary of Indluplace. It was established in 2021 to undertake all the property management functions of the portfolio. With a head office located centrally in Rosebank, decentralised leasing offices in strategic locations and building managers on site at most properties the company is able to deliver great customer service and quick reaction to assist tenants.
Indluplace was incorporated as a public company on 3 December 2013. The company’s financial year end is 30 September.