BRIEFING
Holding on to high-quality tenants a focal point for Redefine
SA-based Redefine Properties is on track to deliver its market guidance of 7%-8% for its 2017 financial year
Retaining tenants has been Redefine Properties’s priority in 2017, says the CEO of the large real estate investment trust, Andrew Konig. Redefine had spent resources on improving its portfolio to keep high-quality tenants which had many choices of landlord, Konig said at a pre-close briefing. The South African economy and political landscape were unpredictable. Lots of attention had to be given to tenants in a market where growth opportunities were scarce, he said. Redefine’s 9.4% forward yield was expensive and punitive, he said. This was especially because the R186 government 10-year bond was sitting at 8.6% and Redefine had, up to mid-May, tracked the R186 very closely, Konig said. On Redefine’s retail assets, he said its shopping centres were experiencing the addition of more food retailers at the expense of apparel stores. Shoppers were visiting less, but trading densities were up. Large high-price items were being replaced by a spend on what people needed, Konig said Redefine ...
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