Offshore property is the Reit choice
Property groups are spreading their wings abroad as opportunities in their home market are few and far between
A number of SA real estate investment trusts (Reits) have clinched big-ticket offshore deals in recent weeks, as the sector’s search for hard currency exposure continues apace. In May, two deals in excess of R1bn were announced: Investec Property Fund entered Europe for the first time through a R1.1bn stake in a pan-European portfolio of 22 logistics properties; and Vukile Property Fund bought a shopping centre in the coastal city of Torrevieja, Spain for R1.2bn. The latter takes the value of Vukile’s Spanish retail portfolio to nearly R6bn.In April, sector heavyweight Growthpoint Properties announced it will invest up to R2.175bn in Warsaw-listed Griffin Premium RE, a pure Polish property play focused on office and mixed-use assets. Growthpoint already has a R4.35bn exposure to the Romania office market via a 29% stake in London AIM-listed Globalworth Investments. Retail-focused Hyprop Investments earlier this year invested R1.12bn to acquire a 90% interest in two Croatian shopping...
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