Delays at public works hit Delta
Company declares disappointing half-year results as change of ministers stalls implementation of new government policy on leasing
Delta Property Fund, which owns a big portfolio of government-tenanted buildings, has been hit by delays in the implementation of the new Department of Public Works leasing policy. The company declared a disappointing set of results on Tuesday for the six months to August, with dividend payouts up only 1% year on year. Although that was in line with market expectations after management downgraded growth forecasts earlier in 2017 for the 12 months to February 2018, it was well below the previous 5% growth forecast. The department’s new policy framework was expected to be finalised in April, but in President Jacob Zuma’s cabinet reshuffle in March, former public works minister Thulas Nxesi was replaced with Nathi Nhleko, and that has delayed the process. The department’s new leasing policy is expected to introduce more aggressive black ownership requirements for landlords tendering for government leases. Delta CE Sandile Nomvete said on Tuesday that the company was waiting for clarity...
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