Growthpoint Properties plans to spend R2.3 billion to optimise and enhance the value of its portfolio.
The group announced it would also dispose of R4bn of assets over the 2024 and 2025 financial years as part of strategy to simplify its business.
South Africas largest REIT, which also owns commercial property assets in the UK and Central and Eastern Europe, said in a nine month trading statement that some R1.6bn would be spent on new assets, particularly logistics warehouses for the industrial portfolio, while further environmental, social and governance (ESG) initiatives would be undertaken.
Some R1.7bn was spent on developments and capital expenditure in the nine months to March 31. Given the negative impact of high interest rates, the guidance of a 10% to 12% decline in distributable income per share was maintained for the financial year to end-June 2024.
Its international expansion strategy had also been refocused. UK-based NewRiver REIT was in talks to acquire Growthpoints 68.1% stake in UK shopping centre company Capital and Regional.
