Axum is a private investment holding company. The company was founded in 2012 by President Elias Zeekeh, and has been under present management since this time.
The objective of Axum through its diversified holdings is to produce steady cash flow as well as long term shareholder value. In order to reach this objective the company follows a disciplined investment strategy based on its core principle of low risk value investing in the areas of residential real estate, public equities, and private equities.
Axum Holdings owns Residential Real Estate in Hamilton, Ontario Canada. Our portfolio consists of 1-2 Bedroom Apartments in the downtown core plus 3 bedroom townhouses on Hamilton Mountain.
Our conviction to invest in the city stems from the significant shortage of affordable housing, largely due to the spill over effect from the booming Toronto Real Estate market. While Hamilton remains affordable to the millennial demographic cohort moving from Toronto vacancy rates as of Dec 2018 were just 2.5 percent for 1-bedroom apartments and just 3.0 percent for 2- bedroom apartments, which has put upward pressure on rent prices. In 2018 rent rates in Hamilton increased 15.0 percent for 1-bedroom apartments, and 14.2 percent for 2 bedrooms. Even though the rent rate increases have been dramatic they do remain approximately 50 percent less than Toronto.
In order to cope with the lack of affordable housing the city of Hamilton is offering several financial incentives for developers to convert commercial and industrial space into multi residential dwellings. This includes 5 year zero interest loans for 25 percent of the construction value. The reason for the excess of commercial and industrial space is due largely to the decline of the steel industry in the North end of the city which culminated in the collapse of Stelco in 2007. Since then the economy of Hamilton has rebounded to become Canada’s most diverse, and the unemployment rate is approximately 3.5 percent compared to the provincial average of 6.0 percent and the National average of 5.8 percent. Areas inside and outside of the downtown have developed greatly in the past 10 years, but there remain many underdeveloped areas that are currently undergoing gentrification.
Public & Private Equity
Axum Holdings owns equities focusing on a balance between stable dividend growers such as Royal Bank and Brookfield Property Partners, and leading companies in secular growth industries such as Teledoc and Splunk.
Our investment approach can be generally categorized as the barbell strategy which focuses on dividing investments into two baskets. Extremely safe investments, and then more speculative leveraged high growth investments.
Our company also strategically sells options providing stock market investors risk mitigation, and conversely Axum shareholders a steady income stream.