Delta Property Fund hopes to have turned a corner
Government landlord needs tenants to agree to long-term leases in order to forecast its rentals more accurately and to get finance from banks at better rates
State-focused landlord Delta Property Fund, which has been paralysed for more than a year by the government's reluctance to commit to new long-term leases, may have turned a corner after signing rental agreements with two major tenants, Eskom and the SA Revenue Service (SARS). Over the past few years government tenants have tended to opt for short-term rental agreements, which disadvantage landlords as they cannot forecast earnings properly or provide funders with accurate lease profiles. The company's share price climbed around 4% on Monday after the announcement, as it began to claw back the near 60% it has shed so far in 2019. It closed 5.49% higher at R1.92 on Monday, but down 57% for the year.
Delta CEO Sandile Nomvete said he wanted to sort out its leasing backlog after next week’s national election so that the group could forecast its dividends accurately and negotiate better funding deals with banks. He said he would provide more details about the progress Delta h...
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