http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.04Change: 0.08
R/$ = 12.05Change: 0.25
Au 1186.86 $/ozChange: 1.06
Pt 1142.00 $/ozChange: 1.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Sep 09, 2011

The market remains tough, Growthpoint warns

Back
Growthpoint Properties CEO Norbert Sasse discusses the company's financial results. Cameraperson: Nicholas Boyd. Editing: Darlene Creamer.
 
 
 
Engineering|Africa|Industrial|Rental|Africa|Product
Engineering|Africa|Industrial|Rental|Africa|
engineering|africa-company|industrial|rental|africa|product
© Reuse this



JSE-listed property company Growthpoint Properties says that the market remains tough, particularly in the office sector.
“There is lacklustre demand for office space, which makes it competitive among landlords, where everybody fights for the same tenants and will to do anything to keep the tenants,” Growthpoint Properties CEO Norbert Sasse told Engineering News on the sidelines of the company’s result presentation for the financial year ended June 30.

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.”
He argued that, while Growthpoint’s vacancies and arrears declined during the financial year, this did not appear to be a common trend across the industry or the listed property sector as a whole, since the retail and industrial property sectors are holding steady and showing some resilience.
“Despite relatively weak overall market conditions, we have been successful in renewing 65.8% of all leases that expired during the financial year. These have reflected weighted average increases in rentals on renewal of 3.1%. We have noted that clients are generally seeking shorter leases, reflecting uncertainty on the outlook of the South African and global economies.”

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 Construction News
Paul-Roux de Kock
Residential property prices are forecast to grow at 7.2% this year, on the back of 6.72% growth in 2014.
JSE-listed Delta Properties received bids of about R523-million for the bookbuild it launched on Tuesday. The company had set out to raise R400-million and accepted bids of R503-million.
Talks over a proposed merger between heavyweight South African cement producers Afrisam and PPC have collapsed, after the parties were unable to reach consensus on the terms of the deal. AfriSam made a nonbinding, conditional proposal to PPC on December 10 for a...
More
 
 
Latest News
The government of St Helena (SHG) and its Department for International Development (DFID) on Friday appointed airline Comair as the provider of air services to St Helena with the Island’s first airport opening in 2016. Comair would offer a weekly Saturday service,...
The Department of Communications (DoC) digital terrestrial television (DTT) project team was accelerating its efforts to “revive” South Africa’s long anticipated transition from analogue to digital broadcasting. After a more than six-year delay, the next few weeks...
Paul-Roux de Kock
Residential property prices are forecast to grow at 7.2% this year, on the back of 6.72% growth in 2014.
More
 
 
Recent Research Reports
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
 
 
 
 
 
This Week's Magazine
Projected capital expenditure (capex) in the South African automotive assembly industry should reach a record R7.48-billion this year, says the National Association of Automobile Manufacturers of South Africa (Naamsa) in its 2014 fourth quarter business review. Capex...
After several years of navigating project-threatening red tape and currency fluctuations, the 4.4 MW Bronkhorstspruit biogas power plant, which will supply clean energy to a leading automotive manufacturer in Gauteng, is expected to enter production before June....
RESOURCEFUL The raw material for the pilot plant would be supplied from the dissolving wood pulp plants at Sappi’s Saiccor and Ngodwana mills, in South Africa, and the Cloquet mill, in the US
South African paper and pulp producer Sappi reported earlier this month that it would build a pilot plant for the production of low-cost Cellulose NanoFibrils, or CNF (nanocellulose) at the Brightlands Chemelot Campus in Sittard-Geleen in the Netherlands.
The long-term outlook for Nigeria is a country that has the potential to be very strong. So affirmed International Monetary Fund (IMF) Nigeria Mission Chief and Senior Resident Representative Dr Gene Leon on recently. "But we are starting from a point of huge...
Poor infrastructure planning and inadequate maintenance are becoming increasingly problematic for new developments and the associated infrastructure required to support such developments. In many urban and rural municipalities, the state of infrastructure has been...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96