Sep 09, 2011
The market remains tough, Growthpoint warnsBack
© 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
Creamer Media Senior Deputy Editor
To subscribe email firstname.lastname@example.org or click here
To advertise email email@example.com or click here
Other Video News
Recent Research Reports
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
Energy Roundup – February 2016 (PDF Report)
The February 2016 roundup covers activities across South Africa for December 2015 and January 2016 and includes details of a Government Gazette notice that confirms Cabinet’s decision to move ahead with the 9 600 MW nuclear procurement programme; State-owned power...
Energy Roundup - December 2015 (PDF Report)
The December 2015 roundup includes details of State-owned utility Eskom’s application to claw back R22.8-billion; South Africa’s ranking as an investment destination for renewable energy; and a nuclear expert’s thoughts on reactor designs for South Africa’s nuclear...
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
This Week's Magazine
Lifting, transporting, installing and ballasting solutions provider Ale has expanded its global fleet of trailers and invested in the latest range of widening trailers that can be mechanically widened from 3 m to the desired width for any project. Ale ordered 48 axle...
The market for the BMW 7 Series in South Africa differs quite significantly from the rest of the world. China, the US and the Middle East almost exclusively buy the long-wheel-base version, using the German manufacturer’s luxury high-end sedan as a chaffeur-driven...
January new-vehicle sales fell by 6.9%, to 48 615 units, compared with the same month last year. Statistics released by the Department of Trade and Industry show that the domestic new passenger-car market declined by 6.1%, to 34 936 units, compared with 12 months ago.
Information technology (IT) equipment and infrastructure multinational Dell is providing open infrastructure systems for clients so that they can use any systems, including innovative new systems, that suit their business needs, says Dell Europe, Middle East and...
South Africa’s State-owned defence industrial group, Denel, has set up another international partnership, based in Hong Kong. This new subsidiary is Denel Asia and it is a joint venture (JV) with South African private sector company VR Laser.