MICC Properties records N$44 million profit

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. The company controls 269 Independence, Katutura Shopping Centre, and retail centres in Ondangwa, Oshakati and Oshikango.

Vukile Property Fund of South Africa has a 36% interest in MICC Properties Namibia. The group said opening balance at carrying value at N$134 million compared to N$119 million in 2023. Rental revenue during the period was N$137 million compared to N$129 million in 2023.

MICC said net operating income was N$86 million while profit was N$44 million in 2024, compared to N$41 million in 2023.

MICC has total assets worth N$1 billion, while net assets were N$414 million of which Vukile’s net share was N$151 million.

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.

On its part, Vukile Property Fund said the consumer-focused retail real estate investment trust (REIT), outperformed its upper-end full-year market guidance.

Laurence Rapp, CEO of Vukile Property Fund, commented: This year of outperformance is a testament to our clear strategic direction and unwavering focus on execution which positions us exceptionally well to capitalise on opportunities. This sterling set of results is underscored by Vukile’s astute asset selection, sustained strong operational results, and balance sheet strength supported by robust credit metrics and deep liquidity. Our South African portfolio is delivering positive numbers, and our Spanish assets are achieving market-leading performance. Vukile is a resoundingly strong, sustainable business.”

Primarily located in townships and rural areas, Vukile’s defensive domestic portfolio of high-quality shopping centres achieved like-for-like retail net operating income growth of 5,4%. Retail property valuations increased by 5,8% on a like-for-like basis. The demand for space in Vukile’s shopping centres remains exceptionally strong. Active leasing reduced already low retail portfolio vacancies to a mere 1,9%.

The portfolio achieved trading density growth of 2,4%, led by township and rural shopping centres and those in the Gauteng, Western Cape and North West provinces.

Rapp noted that amid a persistently challenging market in South Africa, Vukile’s portfolio, categorised by nodal dominance and needs-based retail, has truly come into its own. “Our sharp focus on resilient, community-anchored assets has proven to be a winning formula and yielded excellent results, even in a sluggish local economy.”

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