Welcome to Capitalgro!
Our team has over 50 years of hands-on experience in property asset management, with a proven track record of exceeding investor expectations. In fact, we were the same team that founded the CBS Property Group in 1994 and led it to a successful JSE listing in 2005,
with a market capitalization of approximately R2.3 billion.
Our primary function is to maximize returns to shareholders through innovation in a dynamic property market. We achieve this by acquiring high-caliber investment properties and liaising with legal advisers, auditors, property valuers, and tax experts to ensure the success of our portfolio. We are responsible to shareholders for achieving projections and growing the portfolio, which we take very seriously.
At Capitalgro, we believe in integrity, teamwork, innovation, excellence, and social responsibility, the same values that built CBS. Our objective is to provide superior capital and earnings growth through an innovative and diverse property investment strategy that works. With the full backing of the RDC Property Group as Capitalgro’s majority shareholder, the company is primed and ready to take advantage of future growth opportunities and to create shareholder value.
Investment Strategy
Capitalgro specializes in acquiring commercial properties that boast quality medium to long-term leases, and are located in prime locations in the greater Cape Metro area. The company’s primary focus is on the office and retail sectors, with a particular emphasis on multi-let properties, which provides diversification of income streams. To expedite capital growth, Capitalgro secures non-recourse debt funding and maintains an appropriate Loan to Value (LTV) ratio to manage returns at reasonable levels of risk.
Investment Returns
Capitalgro aims to achieve an average pre-tax revenue return of 8% annually over a period of five years by targeting acquisitions with an initial yield of 8% in the first year. In addition, the company has established a leveraged capital growth target of 20-25% per annum on average, over a five-year term.
Investment Structure
Capitalgro’s capital structure comprises a linked unit that includes an ordinary share along with an associated linked shareholder loan. This enables the shareholder to receive an interest distribution. The linked unit is revalued in accordance with the company’s valuation policy, which mandates external valuations for the entire portfolio over a three-year period. This means that every property will be independently valued at least once over a three-year period by an external valuer.