INVESTMENTS

Strategy

Post the RMH unbundling in 2020, RMH continues to be defined by its value-adding shareholding in its sole remaining asset, RMH Property.

RMH, through RMH Property, has invested in a sizeable investment portfolio of property entities led by best of breed management teams with exposure to South Africa, Namibia, Mauritius, Serbia, Romania and Cyprus. RMH Property’s portfolio companies conduct their businesses in two focus areas: investments and developments.

RMH Property partners and works closely with its portfolio companies to ensure disciplined capital allocation and to guide, support and challenge them to deliver on their investment and development pipelines in a manner that will ultimately sufficiently deleverage their capital structures, enhance net asset value and produce sustainable earnings and dividend yields. RMH is appropriately capitalised; albeit that lower interest rates have reduced the yield on the working capital endowment.

The RMH board adopts a prudent approach to capital management retaining sufficient capacity and optionality to:
Support its portfolio companies should they experience strain in the current COVID-19 environment.
Invest further in its portfolio companies, where appropriate, should attractive investment opportunities arise therein.
Exploit value-accretive opportunities at the RMH Property level where these faciliate RMH’s net asset value growth ambitions.
As previously communicated to shareholders, the core strategy of RMH remains to monetise the RMH Property portfolio, in an orderly manner, and to return maximum value to RMH shareholders. To this end, RMH Property continues to work on achieving realisations over a four- to five-year period, with the smaller assets being the near-term focus. Any changes to RMH’s stated strategy would be in consultation with shareholders.

RMH Property and portfolio

Atterbury Europe
Atterbury Europe B.V. (Atterbury Europe) was founded in 2014 when APH co-invested with a consortium of private investors to form an Eastern European-focused property company.

Today, the Atterbury Europe investment portfolio comprises of four investments, namely a 97.5% Atterbury Cyprus 25% share in BreAtt and a 50% share in Atterbury Romania.

Atterbury Europe partners with leading real estate developers and entrepreneurs in each market and contributes world-class development and asset management skills into these partnerships with support from APH.

- These partnerships allow Atterbury Europe to obtain in-country expertise and local insights which to successfully source lucrative real estate development opportunities that allow it to deliver returns to its shareholders.

Atterbury Europe is well positioned to take advantage of the exciting real estate development opportunities in the Eastern Europ real estate sector given the strength of its partnerships and its ability to raise capital to fund growth optimally.

Atterbury Property Holdings
Atterbury Property Holdings (Atterbury) has significant experience in property development, having developed more than two million m2 of commercial, retail and residential property since its establishment in 1994.

APH has property development, fund management, corporate services and asset management divisions.

The most noteworthy completed real estate assets in APH’s investment portfolio are a 100% ownership of the Newtown precinct in Johannesburg, 100% ownership of the Grove Mall in Namibia, a 20% stake in Mall of Africa and a 10% stake in Ascencia.

The development expertise within APH is unrivaled in the South African market with a core team of development professionals that have consistently demonstrated the ability to manage development risk to deliver shareholder returns.

Divercity Urban Property Fund
Divercity is an urban property fund focused on regenerating South African cities and demonstrating a new mode of affordable housing delivery that promotes better urban form.

The fund invests exclusively in urban renewal through the development of inner-city (thereby well-located) precincts which feature a dense mix of affordable rental housing, commercial spaces, a rich mix of urban and social amenities as well as high-quality public spaces.

The model is in contrast to the current dominant mode of affordable housing delivery in South Africa where lower income households are confined to the urban periphery, far from opportunities and essential services.

Divercity currently holds a R2 billion portfolio, jointly seeded with assets from leading property companies Atterbury and Ithemba, and seed investments from RMH Property and Nedbank Property Partners.

Integer Properties
Integer Properties (Integer) was formed in 2010 as a partnership between Calculus Capital and Brian Roberts.

The management team identified a funding gap in the property market created by banks providing only 70-80% of funding for new property developments.

Integer’s business model is to partner with reputable property developers who have secured attractive development opportunities but lack the equity to bridge the gap between the development cost and the level of senior bank debt.

Integer provides this equity as an unsecured loan and takes a shareholding in the deal.

Integer focuses on the development and ownership of prime office, industrial and retail properties with strong long-term leases from blue-chip tenants.

The portfolio comprises of new developments and existing income-producing properties.