Growthpoint Properties profits from disposal of non-core assets

Posted On Thursday, 14 January 2010 02:00 Published by eProp Commercial Property News
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Growthpoint Properties Limited has disposed of two non-core buildings for a combined R261 million

Norbert SasseThis represents a profit over June 2009 book value for both properties of some R35 million. The profit on historic cost for the two properties is R138,5 million.

Growthpoint is the largest South African listed property company with local assets exceeding R29.2 billion and a market capitalisation of over R20 billion. It has a portfolio of 438 retail, office and industrial properties, geographically diversified across South Africa producing gross revenues of over R3.5 billion.

In September 2009 Growthpoint acquired a 76.2% interest in an Australian ASX listed property fund that has been rebranded as Growthpoint Properties Australia. GPT Australia has a quality portfolio of 23 warehousing and distribution properties valued at approximately AUD660 million.

"These disposals are in accordance with Growthpoint's strategy to cultivate a high quality property fund and reduce its exposure to non-core properties," said Rudolf Pienaar, Divisional Director-Office Portfolio.

He elaborates that the sales have been achieved at an opportune time and the funds raised from the transaction will be re-invested to enhance a number of Growthpoint’s existing property assets which have better profiles for the company in the longer term.

The two buildings disposed of are Garden Court South Beach in Durban, KwaZulu-Natal, and Tulbagh Park in Hatfield, Pretoria.

Growthpoint Properties Limited CEO, Norbert Sasse explains: "Through the constant re-evaluation of assets, acquisition of prime investments and disposal of non-core properties, Growthpoint will continue to offer investors exposure to a sectorally balanced, geographically diversified, high quality physical property portfolio”.

 

Last modified on Monday, 28 April 2014 18:22

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