Resilient was launched in December 2002, backed by Kagiso and Nedbank Corporate as a property loan stock company. At the time Resilient listed with a total market capitalisation of R361 million and 61 properties in the portfolio. Since listing, the market capitalisation has grown exponentially and Resilient now has a R3 billion development pipeline alone. The portfolio has been steamlined to 20 properties. Resilient’s consistent strategy has been to increase its focus on the retail sector of the property market in geographic nodes or areas that are considered to have superior long term potential. The strategy is to invest in dominant retail developments in small cities and large towns, tenanted predominantly by national retailers and anchored by large supermarkets. This concentration on national retail tenants reduces risk.
In addition, Resilient owns a portfolio of listed property securities. The holding in listed securities, however, is gradually being reduced to finance new developments and extensions to existing properties.
The retail trading environment remains buoyant and trading densities in the Resilientportfolio, particularly in Limpopo Province, are currently growing significantly faster than rental escalations. This provides further opportunities for increased rentals on expiry of leases and underpins the existing rentals in the event of a slowdown in the retail-trading environment.
