Resi Investment Group
Resi’s portfolio of mid-range apartments provides stable income and some trading profits, albeit in a tighter market with rentals and property values under pressure. The ability to grow the business has, however, been hampered by a lack of suitable stock. While we remain committed to the residential sector in the Western Cape, it is our intention to diversify into other regions of
South Africa in order to expand the Resi portfolio and secure the growth of the business.
We do trade in some units where we feel we have achieved our target with respect to maximum value gained. We continuously review our portfolio and where we feel the value has reached its maximum, we look to offload those properties and recycle the cash into new deals.
Resi’s contribution to INAV decreased by 5% due to slight decreases in fair value adjustments. Resi contributed R3.6 million (2017: R28.3 million) to group profits.
Resi’s future contribution to group INAV is dependent on our ability to source attractively priced residential stock. Several potential transactions have been identified and will be announced when and if they are finalised.