Australian investment delivers for Growthpoint
Total returns from the Australian investment of SA’s largest real estate company, Growthpoint Properties, were the best in that country’s real estate market in the first half of this year. Growthpoint’s early move into Australia in 2009 has worked to its advantage. It bought into what became Growthpoint Australia (GOZ), while SA was being battered by the world economic crisis. It holds 65.5% of GOZ, which has grown significantly and now owns A$3.3bn (R32.87bn) in assets. Only one other South African fund, Investec Australia Property Fund, has managed to invest directly in the highly competitive Australian market.
Evan Robins of Old Mutual Investment Group said Growthpoint’s Australian investment helped the company maintain consistent dividend growth. "The management team has invested carefully and patiently, which is why they are able to meet dividend forecasts. "They were fast movers out of SA and managed to enter the market when prices were at the bottom of a cycle," Robins ...