Landlords desperate for economic growth, says Investec Property Fund
IPF’s offshore investments help offset the muted growth in the local market
Investec Property Fund (IPF) says if the national election achieves a positive result for business, it and other South Africa-focused real estate stocks should see their fortunes turnaround in late 2020. Speaking after the release of financial results for the six months to September, CEO Nick Riley said South African commercial property landlords were desperate for renewed confidence and spending in the economy.
“Real estate companies focus on putting bums on seats. We need a pick-up in economic growth to bring new tenants and demand to our assets, as then we can spend more and provide more space. I think the right things are happening at a government level, with state-owned enterprises, and the investment and jobs summits that were held recently. So if we get the right result in the beginning of 2019, I reckon about 18 months down the line, we’ll see SA property owners back on the right track,” Riley said. The weak economy has been a major contributor to the shoddy performanc...