Property Development InvestmentsFortress REIT Limited, the diversified property group, plans to grow its logistics-focused properties to two thirds of its total portfolio by 2020 as it forges ahead with a raft of new developments worth a combined R1.5 billion.
The Johannesburg-based REIT currently owns 100 logistics-focused properties, comprising approximately 42% of its total portfolio. The remainder includes retail (35%), industrial (13%) and office (10%) properties. Fortress plans to rebalance this overall portfolio mix to two-thirds logistics and one-third commuter-focussed, rural retail properties over the next two years.
“The rebalancing of our property portfolio towards a mix of roughly two thirds logistics and one third commuter and rural retail is a reflection of where we envisage growth in the foreseeable future,” said Mark Stevens, CEO of Fortress. “With the new-found optimism in the country we have seen a noticeable increase in interest from prospective tenants across our entire portfolio. However, we believe the logistics and rural retail space offers the best opportunity to capitalise on this growth.”