GLOBAL EXPANSION
Hard-pressed retailers force Growthpoint to look offshore
Growthpoint Properties is on track to achieve its income targets for financial 2017, but says the company is concerned about the pressure on local retailers in a struggling South African economy. Norbert Sasse, CEO of the largest local real estate group, said in an investor call before the close on Thursday, that Growthpoint had implemented strategies aimed at increasing the contribution to its earnings by offshore assets from 19% to 30% within the next three to five years. "Retailers are under pressure. Many are seeking shorter leases. This can change when they choose to close branches. So overall these are tough times for retailers. At least, many of them are pulling back regarding developments so we won’t increase the oversupply of retail," said Sasse. The weak South African economy was part of the rationale to expand abroad. "In line with this, during the nine months to March 31 2017, we invested circa R1.6bn into GOZ [Growthpoint Australia] through the Drip [Distribution Reinve...
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