Seven of JSE-listed Growthpoint Properties’ retail properties in KwaZulu-Natal were damaged during last week’s unrest.
The damaged property represents 2.3% of the group’s South African gross lettable area (GLA)..
None of Growthpoint’s properties in other provinces suffered damage.
The affected assets include two retail properties, representing 4.64% of the group’s retail GLA, namely Watercrest Mall, which is 50% co-owned, and City View, which is wholly-owned by Growthpoint.
Watercrest, which has a total GLA of 45 318 m2, suffered extensive damage to all common areas, shop fronts and air conditioning, and tenants’ premises were looted. The centre did not suffer any structural damage to the building and cleaning by staff, cleaners and the local community has started.
City View, which has a total GLA of 40 362 m2, has damage to all common areas and tenants’ premises were looted.
Looters attempted to burn down the delivery area and road facing tenants on multiple occasions, but the fires were quickly extinguished. The looters did, however, cause some damage to the air-conditioning system and electrical reticulation, which Growthpoint says has rendered a portion of the centre without electricity.
Sprinklers were activated as a result of the fires and there is also resultant water damage.
A professional team has been engaged and they are busy quantifying the damage on both sites, Growthpoint says.
Additionally, five of the company’s industrial properties, representing 2.73% of the group’s industrial GLA, were impacted to varying degrees.
The Runway Park facility of 12 160 m2 was breached and looted and access to this pharmaceutical facility has been restricted and the damage is still to be assessed.
The adjacent Runway Park joint venture (JV), which is 50% co-owned and measures a total 28 886 m2, was also breached, with severe looting and fire damage to offices.
The 5 816 m2 multi-tenanted facility Inanda Road was partly looted, with minor property damage, while Lanner Place, a 14 446 m2 multi-tenanted facility, was severely looted with minor property damage.
Ficus Place, a 9 886 m2 facility, suffered minimal looting with damage to the perimeter fence, and Goodwood Road (previously African Gabions), a 5 314 m2 facility, was severely looted with minor property damage.
All properties are insured for business interruption and with the South African Special Risks Insurance Association (Sasria), Growthpoint says.
“The company continues to focus on reinstating trading and operations at all these affected facilities but is monitoring the volatile situation. Ensuring the safety and security of our staff, centre management, tenants and shoppers, as well as our assets remains paramount,” Growthpoint says, noting that additional security has been deployed to high-risk assets.