Growthpoint warns of little to no growth from SA properties
The real estate investment trust says it will have to rely on its international properties for growth due to deteriorating conditions in the local property sector
Growthpoint Properties says it will have to rely on its international properties for growth, as it expects “little to no growth” from its SA portfolio due to deteriorating conditions in the local real estate sector. Most growth in the year to end-June 2019 will come from the real estate investment trust’s (Reit) international investments, Growthpoint said in its interim results on Wednesday. SA’s property fundamentals “remain weak and are worsening”, which means the local portfolio would probably produce “little to no growth”. Even the V&A Waterfront, which benefits from local and international tourism, was “not immune to the erosion in the domestic economy, and turnover rentals declined in the first half”. However, property fundamentals remained strong in Australia, Growthpoint said. The group has a 66% interest in Growthpoint Properties Australia, which owns 59 properties valued at R38.3bn. Dividend withholding taxes relating to that investment would be lower this financial year, ...
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