Real estate group Growthpoint Properties’ first foray into Eastern Europe has received a mixed reaction from one South African fund manager who is concerned its investment in Romania is too small to move the fund’s needle. More than 10 South African property companies have already invested in Eastern Europe in the past two years but many have made larger investments than the €186m (R2.7bn) Growthpoint is spending on a 26.9% stake in Globalworth Real Estate Investment. The investment in the Romanian office owner has come long after the likes of New Europe Property Investments bought into shopping centres in the country and some eight months after Growthpoint’s rival, Redefine Properties, invested in Polish retail and offices. There have been questions about whether Growthpoint’s initial exposure to Romania will be too small to deliver meaningful returns early on for the R71bn-valued company. Portfolio manager at Alternative Real Estate Capital Management, Garreth Elston, said his tea...
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