LOOMING DOWNGRADE
Why Growthpoint is feeling the pinch on SA’s decline
The rating under review reflects Growthpoint’s operational concentration in SA
While Growthpoint Properties is determined to maintain its position as a reliable South African-focused property fund that rewards investors over the long term, it is running out of space to grow in a constrained domestic environment. It is also likely to suffer the negative effects of any sovereign ratings downgrades that SA may receive. Moody’s this week said it had placed all the global scale ratings assigned to Growthpoint under review for downgrade. SA’s largest locally based property group, which controls assets worth more than R100bn, has not performed especially well this year so far and is hoping its jewels — The Victoria & Alfred Waterfront, Growthpoint Australia and certain Sandton offices — will boost its fortunes in the next few years. Growthpoint’s share price is down 0.97% year to date. However, over a five-year period, it has climbed 26.31%. The company has a market capitalisation of about R73bn. Zayd Sulaiman of Catalyst Fund Managers said a downgrade could have a d...
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.