PROPERTY: Growthpoint Properties Shifts Non-Core Assets
Recent Gauteng Business News
Growthpoint Properties Limited has disposed of two non-core buildings for a combined R261 million. This 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.
"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”.
Business News Sector Tags: Property|