CHAMWE KAIRA
Vukile Property Fund, which has a 36% stake in MICC Properties in Namibia has said its property assets in MICC Properties Namibia is currently valued at N$1 billion. The company controls 269 Independence, Katutura Shopping Centre, and retail centres in Ondangwa, Oshakati and Oshikango.
Vukile said in response to questions by Observer Money that over the past 20 years, the average annual value growth in the portfolio (MICC Properties Namibia) was 7.5% per annum.
Commenting on Vukile’s future plans in Namibia, the company said given that Vukile’s remaining interest in the Namibian portfolio is considered to be non-core to Vukile, the company does not have any plans to increase its stake in MICC Namibia.
“We remain positive about the real estate market in Namibia, especially given the potential for interest rate cuts. We are also seeing a general increase in demand for retail space which is evidenced by three of the four retail assets in our portfolio now being fully let. Foot traffic has returned to pre-COVID levels in Northern Namibia with the re-opening of the Angola Border. The recent extension of the opening hours of the Angola border to 24 hours, is also expected to enhance trade in the North even further,” Vukile said.
Regarding current trends in the South African property market, Vukile said the outlook on South Africa remains positive especially given the news flow that transpired post the elections.
“The property sector will also benefit from the potential interest rate cutting cycle over the coming months and years, the company said.
In September, 2022 through the management of the Tunga Real Estate Fund, Old Mutual Investment Group (Namibia) (Pty) Ltd, acquired majority shares in MICC Properties (Namibia) from Vukile Property Fund Ltd. The Tunga Real Estate Fund is an unlisted property fund, capitalised by GIPF, aimed at commercial and affordable housing development.
Through the transaction, the Tunga Real Estate Fund gained exposure to five commercial properties in Namibia – 269 Independence, Katutura Shopping Centre, and retail centres in Ondangwa, Oshakati and Oshikango.
MICC Properties Namibia (Pty) Ltd, recorded a profit of N$44 million for the year ended 30 March 2024 compared to N$41 million in the previous year. Vukile describes itself as a high-quality, low-risk, specialist retail real estate investment trust (REIT) with a geographically diversified portfolio of property assets valued at N$40 billion, of which 61% is based in Spain. Of the N$35 billion of directly owned property assets, 44% consist of urban, commuter, township and rural malls across South Africa, while 56% are held in Spain through the Madrid-listed subsidiary Castellana Properties Socimi.
