Accelerate Property Fund bemoans rising costs of business
Rising municipal costs, which have been growing at 10% a year, coupled with a tough retail environment, are making business tough for the fund
Accelerate Property Fund says a tough retail environment and the rising cost of doing business will see its dividend shrink in 2019. The real estate investment trust (Reit) said in a trading statement on Thursday that it expected its dividend to shrink by between 8% and 11% for its full financial year to March. The group said it had also delayed the long-awaited relaunch of the extended Fourways Mall, to August 22 from April 25 2019.
Accelerate COO Andrew Costa said the company believed that its exposure to the growing commercial node, Fourways, would hold it in good stead in the long term. The company owns a number of assets in Fourways, including the Buzz shopping Centre, Cedar Square and Fourways Mall, which is set to be the continent’s largest shopping centre when it is completed. The company is predominantly a retail fund, with shopping centres providing 67% of its revenue. The majority of its retail exposure, or 64% of retail by revenue, is located in the Fourways node. ...