“Now what this means is that youu2019ll be reducing your office portfolio but at the same time moving into another asset class, residential. And the yields that weu2019re seeing in terms of inception yields will be double digit yields. So we see that being very attractive from our side as a fund. Diversification but then also the enhanced yield.
BDTV: An interesting time to be doing that where youu2019ve got a South African consumer thatu2019s highly correlated to GDP as well, feeling pressure and, of course, within an anticipated rising interest rate environment?
GJ: Iu2019m not sure in terms of a rising interest rate environment but certainly by us delivering lower LSM quality residential into the markets that are close to offices, for example in Rosebank here, pretty close to the Gautrain station, close to Rosebank Mall aimed at the lower, the LSM 7 and 8. We see that as being a definite need for quality but affordable accommodation in or around the places where guys work. So actually weu2019re seeing this fitting in very well to for example the Rosebank node and for example into Su
inghill. And also on the Bloemfontein property, that will be more for student accommodation because itu2019s closer to the Bloemfontein Technikon, thereu2019s certainly a need for that sort of accommodation.
BDTV: So you touched on disposals, you touched on conversion, what about actual negotiations when it comes to rental incomes, how much trickier has that become and how much have you had to compromise?”