DEVELOPMENT AND TRADING DIVISION
Growthpoint uses skills in pursuit of profit
In a first for the JSE’s real estate investment trust sector, Growthpoint Properties will now have a dedicated development and trading division to help boost earnings. With a market capitalisation of about R78.3bn, the group is the largest South African-based property group on the JSE. The group would add development and trading fees generated by this new division to its dividends, saying it would "total no more than 1% to 2% of its distributable income". Most listed property funds have battled to maintain inflation-beating dividend growth in a tough operating environment and a weaker economy, which has prompted a number of groups to look for alternative or new revenue streams. Growthpoint would develop offices, industrial and smaller retail assets for potential clients and access new business opportunities, Growthpoint CEO for SA, Estienne de Klerk, said. "The team behind Growthpoint’s trading and development has established a sterling track record of creating assets and value for ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.