IPF delivers net property income growth of 9.1%

Investec Property Fund and Investec Australia Property Fund have recently released their interim results for the period ending September, showcasing impressive growth despite challenging conditions. Nick Riley, CEO of Investec Property Fund, and Graham Katz, CEO of Investec Australia Property Fund, sat down with CNBC Africa to discuss their strategies and performance in the real estate market. Investec Property Fund, a South African investment vehicle with a 13% interest in Investec Australia Property Fund, has seen a 9.1% increase in net property income. This growth can be attributed to a focus on internal efficiency, tenant needs, and strategic acquisitions. Riley emphasized the importance of quality real estate attracting strong tenants with robust cash flows, leading to sustainable income and capital growth. The success of the fund's office and retail portfolios in locations like Rosebank and Branson was highlighted as key factors driving growth. Katz spoke about the stability and attractiveness of the Australian market, with 25 years of consecutive GDP growth and low unemployment rates. Despite fierce competition, the fund has identified opportunities to add value in areas where they can differentiate themselves. The CEOs also touched on the synergy between the South African and Australian operations, leveraging Investec's culture and expertise to stay ahead of the curve. Looking ahead, both CEOs are optimistic about the future, with plans to focus on asset management opportunities and delivering superior service to clients. While South Africa faces economic challenges, Investec remains dedicated to providing quality properties and services to secure their tenant base amidst market competition.