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 experie...

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