Overview
Jeqe Asset Management (JAM) is primarily focused on expanding its existing property portfolio, which consists of retail and office assets valued between approximately R2.9 billion and R3.2 billion. Additionally, JAM is implementing an energy reduction program at its major properties to help manage tenants’ occupancy costs, which is a key part of its management strategy moving forward
Development Pipeline
Our client Nthoese Development, is pursuing its growth strategy through a retail development pipeline aimed at high-growth areas, with the goal of establishing a high-yield portfolio. This pipeline is valued at around R1.6 billion and is projected to come to market within the next 24 months. It includes properties such as Setsing Plaza, Gcuwa Mall, Kanyamazane Centre, and the flagship development, Manzini Mall in Eswatini.
Manzini Mall will cover 22,800 m² and will be co-anchored by Woolworths and Shoprite. Additionally, this property has the capacity for an extra 60,000 m² for further development in Phase 2, which will be considered based on the evident demand for high-quality retail in the area.
The development of these properties will strengthen Shenge’s position in the lower Living Standards Measure (LSM) space or emerging markets, providing shareholders with access to this growing segment. Currently, the group’s asset allocation consists of 44% retail and 56% office properties. With the addition of these retail developments, the intention is to rebalance the risk associated with office exposure, which will decrease in percentage terms. After the developments are complete, the anticipated sector split is expected to shift to 62% retail and 38% offices.
| Property | Region | GLA M² |
|---|---|---|
| Setsing | Free State | 25,725 |
| Elukwatini Crossing | Mpumalanga | 10,531 |
| Elukwatini Shopping Centre | Mpumalanga | 6,382 |
With the strong appetite from National retailers in both the Elukwatini and Setsing nodes, it has meant we have had to look at bulking up our national representation closer towards the 90% mark for the centres. This will be implemented through our effective leasing strategy from (JAM) and the property management team. Both Centres have a combined additional bulk of close to 15 000m2 which lends itself to big box users like Cambridge and Build It. Post extension, we expect the property to have an improved through rate of R110/m2 as well as be defensive in nature.
| Property | Region | GLA M² | Forward Yield % |
|---|---|---|---|
| Fedsure Forum | Gauteng | 30,816.00 | 12.14 |
| 78 Howard | Gauteng | 5,643.00 | 11.61 |
| Umnotho House | Gauteng | 38,642.00 | 9.93 |
Sustainability
Jeqe is committed to exploring alternative forms of non-GLA revenue and reducing our environmental impact. Our short-term goal is to engage with solar energy companies to create partnerships that will unlock renewable energy solutions for our assets. This initiative aims to lower operational costs for our clients while allowing us to benefit from the savings achieved.
We have identified the following retail properties—Setsing, Gcuwa, and Thulamahashe—for the rollout of this initiative. We anticipate a return on investment between 16% and 20%, with a payback period of approximately [number] years.
To remain relevant, it is essential for us to incorporate sustainability into our portfolio while retaining our tenants. Over the past five years, green initiatives have become a key focus in the property sector. Moreover, with the rising costs approved by Nersa, it is equally important to address these sustainability measures.