Acsion

Group overview

Acsion’s investment portfolio consists of a mixture of nine well-established, strategically located retail properties, a light industrial property and a mixed-used development in South Africa, as well as an international retail property situated in Cyprus.

Acsion follows a value engineering approach, unlocking development profits and subsequently generating annuity income and further capital growth for its shareholders. The Group’s success lies in the active and continued management of its developed property portfolio, ensuring a reliable stream of rental income.

The Group’s prudent financial approach and strong financial position enable it to secure funding for high-growth development projects, with the potential to achieve returns above the market average.

History

Founded in 1981 by Kiriakos Anastasiadis, Acsion emerged over the years as a successful property developer and property holding Group. Through a combination of ingenuity, effective management and value engineering, the company achieved remarkable growth, all of which was developed in-house. Acsion’s exceptional understanding of the planning, development, construction, letting and property management processes has been instrumental in its growth and success.

Value Engineering A way of work developed by Acsion where significant cost savings are realised through an innovative or more effective approach while maintaining the highest standards of sustainable development and construction practices.

In 2014 the company’s shareholders made a strategic decision to diversify funding sources and accelerate the implementation of the development pipeline. This resulted in the consolidation of all property developments into a single entity and pursuing a listing on the Johannesburg Stock Exchange (JSE).

Consequently, Acsion controls each element of its property value chain: from identifying development opportunities through to the management of mature property assets, with an emphasis on value engineering.

Value creation and strategy

With a focus on providing above-market returns, Acsion leverages its stable income stream and strong financial position to obtain funding for its pipeline of high-growth development prospects.

This dynamic approach allows the Group to continually diversify its portfolio, which initially had a predominantly retail focus. Over time, Acsion’s development pipeline has expanded to include ventures into the hospitality and mixed-use sectors. To seize opportunities, the Group actively explores development prospects both locally and abroad, often partnering with reputable and experienced parties in southern Africa and south-eastern Europe, further adding to its geographic, sector and currency diversification. This strategic approach enables Acsion to pursue high-growth development opportunities while maintaining prudent gearing ratios and capital buffers.

The Group’s strategy centres on driving net asset value (NAV) (capital) and income growth for its shareholders.

This is achieved by identifying and investing in value-creating development opportunities, followed by the leasing and management of these properties over their lifecycle. Acsion’s success is reinforced by its experienced internal property development, asset management and property management teams. Furthermore, the Group’s longstanding relationships with major retailers, banks, franchises, local stakeholders and landowners provide access to future development opportunities, contributing to its income and capital growth in the medium term.

To enhance the defensive quality of its portfolio, the Group has diversified into mixed-use property assets through projects such as Acsiopolis@Sandton in Sandton, Gauteng Province, and strategic acquisitions in Franschhoek and Cape Town in the Western Cape Province, in South Africa, and in Pylaia in the Thessaloniki Prefecture in Greece. Geographical diversification outside South Africa remains part of Acsion’s long-term plan, achieved through partnerships with experienced and reputable local entities to pursue international property development opportunities.

Southern Palace Investments 108 (Proprietary) Limited (T/A Anaprop Property Management) is the internal management company that oversees the major areas of Acsion’s business property management function, which includes leasing, finance, operations, marketing, asset management and developments, as well as the hospitality operations in the mixed-use properties. Anaprop Property Management currently has some 400 employees.

Acsion offers its shareholders access to superior annual net asset value (NAV) growth

Acsion’s focus on NAV growth and NAV uplift is its key differentiator.

Acsion offers investors access to superior returns from sustainable, long-term capital growth and ongoing re-investment into viable property opportunities, including development, tenanting and management.

Corporate governance

The Acsion Group strives to adhere, in all material respects, to the King IV Report on Corporate Governance in South Africa, 2016 (King IV™), and the JSE Listings Requirements, including the Companies Act 71 of 2008 and the Memorandum of Incorporation (MoI) of all Group companies. Acsion identifies and mitigates against key risks that are continually monitored and assessed in terms of Acsion’s Risk Enterprise Framework.

Acsion’s Code of Conduct and Ethics

Acsion’s Code of Conduct and Ethics (the Code) is central to its sustainable growth. The Code guides all employees, contractors and other stakeholders in preventing and monitoring unethical conduct, fraud and corruption. Furthermore, Acsion supports a professional environment in which great ideas can turn into action and value delivery for investors, tenants and consumers. The Acsion Board of Directors (the Board) is committed to and endorses the Code of Corporate Practices and Conduct as contained and recommended in King IV™ and the JSE Listings Requirements.

Board committees review the Group’s governance structures and processes on an ongoing basis to ensure that the Board exercises effective and ethical leadership, conducts its affairs as a good corporate citizen and takes decisions to ensure sustainability.

Acsion values

Ethics are the cornerstone of Acsion’s business, and an unequivocal commitment to ethical values underpins all facets of the Group’s operations.

Mall@Lebo

Metropolis Mall

Environmental governance

Environmental sustainability

At Acsion, we are focused on green value, which is the sum of the financial, environmental, social, information and functional benefits that a green product or service can provide to consumers. This represents the natural capital we utilise responsibly and sustainably to create value. The Board of Directors takes ultimate responsibility for sustainability matters and manage our environmental impact.

Green considerations

We prioritise green practices in the design and construction of new buildings, by integrating energy and water-saving technologies. Our portfolio incorporates various eco-friendly elements, such as

Implementing building management systems to control electricity usage efficiently
Value engineering heating, ventilation and air-conditioning (HVAC) designs, and using natural ventilation where possible
Maximising natural lighting and utilising energy-efficient light fittings
Establishing dry-gardens that require minimal water in landscaped areas.

Green energy

We in the Acsion Group have made significant investments in renewable energy generation, installing solar photovoltaic (PV) capacity across our South African portfolio. These efforts align with our commitment to sustainability, and help counter rising electricity costs and power outage risks.

We are in the final stages of negotiating an expanded solar PV plant at Metropolis Mall in Cyprus. This increase in capacity will enhance energy management and lower operating costs, thereby contributing to reducing our carbon footprint.

Our first large-scale battery energy storage system (BESS) is being implemented at Mall@55, complemented by a 1.27 MW rooftop PV system. This green energy solution will power the mall during daylight hours and allow uninterrupted trading during power outages. Feasibility studies for additional BESS installations powered by PV systems are under way.

We are planning to increase our current energy generation capacity from 11 MWp to 20 MWp by the year 2025 and install 20 MWh of battery storage which will equate to 28 million kWh per annum of solar energy production across our portfolio.

Our commitment to green value

On-site waste sorting and recycling for buildings over 20 000 m².
Our installed PV capacity across South Africa generates over 1 110 000 kWh of energy monthly, thereby reducing carbon emissions.
The implementation of a wastewater recovery plant at Acsiopolis@Sandton, which has been producing 12 800 kℓ since August 2022, which promotes sustainable water use in the process. Rainwater harvesting initiatives are under consideration across our portfolio.

We at Acsion are focused on increasing our solar energy footprint, exploring battery storage feasibility, optimising water usage and enhancing utilities management throughout our portfolio. These efforts align with our commitment to environmental sustainability and stewardship.

The total production of electricity in the Group is equivalent to 9 511 metric tonne of carbon dioxide offset, which translates to a saving of 4 773 168 kg of coal burnt.