PROPERTY NEWS - Private groups Africrest Properties and StandOut Properties have decided to merge, after having purchased buildings together over the last three years.
Each company was formed by a brother in the Blend family. The new merged entity will control assets of just more than R1bn.
Africrest, co-founded by Justin Blend and Nicholas Katsapas, has doubled its portfolio size in the last two years by predominantly growing its office portfolio in the northern suburbs of Johannesburg.
Blend said this growth could be attributed to a "tenant profit share model", where Africrest would source and purchase buildings for larger tenants. Using this model, tenants received a free profit share in the building while paying market-related rental.
"It is the ideal scenario for tenants whereby they have all the advantages of owning a property, but have no responsibility for the asset other than paying the rental on a timely basis. This is an ideal opportunity for tenants to leverage off the extensive experience, network, balance sheet and property management ability of Africrest and take part-ownership in a property. Tenants can use their money to grow their business while still having ownership in the property," he said.
Africrest also had a strong relationship with funder Futuregrowth.
"When your funders understand the way you do business and keep a close eye on the way the business is run, it makes the funding process a lot smoother," Katsapas said.
Meanwhile, StandOut Properties, co-founded by Greg Blend and Grant Friedman, has accumulated 17 properties in the past four years.
The company has invested in lower-to-middle-income residential buildings as well as B-grade and C-grade office buildings.
Africrest, co-founded by Justin Blend and Nicholas Katsapas, has doubled its portfolio size in the last two years by predominantly growing its office portfolio in the northern suburbs of Johannesburg.
Blend said this growth could be attributed to a "tenant profit share model", where Africrest would source and purchase buildings for larger tenants. Using this model, tenants received a free profit share in the building while paying market-related rental.
"It is the ideal scenario for tenants whereby they have all the advantages of owning a property, but have no responsibility for the asset other than paying the rental on a timely basis. This is an ideal opportunity for tenants to leverage off the extensive experience, network, balance sheet and property management ability of Africrest and take part-ownership in a property. Tenants can use their money to grow their business while still having ownership in the property," he said.
Africrest also had a strong relationship with funder Futuregrowth.
"When your funders understand the way you do business and keep a close eye on the way the business is run, it makes the funding process a lot smoother," Katsapas said.
Meanwhile, StandOut Properties, co-founded by Greg Blend and Grant Friedman, has accumulated 17 properties in the past four years.
The company has invested in lower-to-middle-income residential buildings as well as B-grade and C-grade office buildings.
