Sep 09, 2011
The market remains tough, Growthpoint warnsBack
Engineering|Africa|Growthpoint Australia|Growthpoint Properties|Industrial|Rental|V&A Waterfront|Africa|Australia|South Africa|Product|Retail|Norbert Sasse
© Reuse this
He added that, despite the difficult local economic and financial conditions and an uncertain outlook for global economic growth, the company is pleased with the positive performance.
“Our portfolio occupancy was strengthened during the year, with the overall vacancy level coming down from 6.4% to 5%. The successful cutback in vacancies has been balanced against office space in the context of a gruelling economic climate with low gross domestic product growth and increasing unemployment figures.”
Sasse cited the acquisition of the V&A Waterfront, an 8.1% distribution growth and Growthpoint Australia’s performance as highlights for the year.
He noted that Growthpoint’s long-term expectations of the V&A Waterfront are for superior returns generated by completing all development opportunities.
“The V&A Waterfront transaction has given Growthpoint development exposure to what is, arguably, the most valuable development bulk and rights in South Africa.”
He confirmed the company’s immediate objective was to formulate an overall precinct master plan with the Government Employees Pension Fund to ensure the ability to take the best advantage of opportunities and demand in changing markets, as well as maximising management structures.
In terms of double-digit growth, Sasse cautioned that this would only be seen in “the next two-odd years, but is dependent on economic growth”.
He pointed out that, for listed companies to achieve double digits, they need to decrease their vacancies and reduce their finance costs, and rental levels on renewals would need to grow.
Growthpoints has about R400-million worth of developments on the cards and an acquisition of about R300-million.
“Ongoing investment in our portfolio through refurbishments, redevelopments and capital expenditure as well as active asset management also underpins long-term capital appreciation. Prospects are good for a positive growth in distribution of 3% to 7% in Australia, next year,” concluded Sasse.
Edited by: Martin Zhuwakinyu© Reuse this Comment Guidelines (150 word limit)
Other News This Week News
Updated 43 minutes ago The South African Chamber of Commerce and Industry (Sacci) would work with the office of the Afican National Congress (ANC) secretary-general Gwede Mathashe on a series of constructive engagements on improving the domestic economic climate and building a more...
Updated 55 minutes ago JSE-listed investment and empowerment group Grand Parade Investments (GPI) and electronics contract manufacturer Tellumat have teamed up to create a 51:49 joint venture company Grand Tellumat Manufacturing. The transaction would see the engineering skills and...
Updated 55 minutes ago JSE-listed property group Redefine Properties on Friday said its acquisition of all the assets and the property portfolio of Fountainhead Property Trust, had not been approved by the requisite majority of Fountainhead unitholders and would, therefore, not be...
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
This Week's Magazine
The multibillion-rand development of the Zendai Modderfontein New City, east of Johannesburg, will aim to exemplify an integrated city node, says property group Zendai South Africa COO Wenhui Du. The development will focus on the Modderfontein Gautrain station to be...
The South African Civil Aviation Authority (CAA) hopes to have finalised regulations for the flying of Unmanned Air Vehicles (UAVs) – also designated Remotely Piloted Air Systems (RPAS) and popularly called drones – in the country’s civilian airspace by the end...
Various stakeholders have expressed optimism that the Small Business Development Ministry, created after the national elections in May, will add much needed impetus to enterprise development in South Africa, where a strengthening of the entrepreneurial culture is...
Capturing and storing carbon dioxide (CO2) is the only way through which the world will achieve the lowest of the United Nations Framework Convention on Climate Change’s (UNFCCC) global warming predictions, called the representative concentration pathway (RCP) 2.6....
The City of Johannesburg has recovered R107-million following the arrest of 22 people allegedly involved in corruption, collusion, fraud and tampering with the city’s electricity systems, which had ultimately cost the city R200-million in lost revenue.