RING-FENCING PORTFOLIO
Tower Property Fund grows in Croatia
Cape-based Tower acquired a R1bn retail property portfolio in the country, increasing the fund’s total portfolio value to more than R5bn
Cape-based Tower Property Fund is planning to ring-fence its growing Croatian portfolio into a new investment vehicle, CEO Marc Edwards says, with the company having had "a transformative 2016". Tower released results for the six months to November on Tuesday, highlighting it had acquired a R1bn retail property portfolio in the country, increasing the fund’s total portfolio value to more than R5bn. The exposure to Croatia made up 28% of the portfolio by value. Edwards said Croatia was growing steadily from a low base after a recession that ended in 2015 and GDP growth of 2.5% was forecast for 2017. "The risk on our Croatian properties is low as we have secured long-term head leases from the sellers. We are planning to ring-fence our Croatian portfolio into a new investment vehicle to provide greater opportunity for growth in this exciting region," he said. It would be beneficial "to hold the Croatian and future offshore assets in a different structure". "Trying to raise funds in SA ...
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