Growthpoint profit rallies on acquisitions

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CorporateBusiness

Johannesburg - Growthpoint Properties, South Africa’s biggest real estate company, said full-year profit increased 15 percent as the owner of the V&A Waterfront in Cape Town acquired stakes in office and retail projects.

Operating profit increased to 4.95 billion rand in the 12 months ending June 30, the Johannesburg-based company said in a statement today.

Revenue rose to 14 percent to 6.61 billion rand.

The shares gained 0.4 percent to 25.90 rand as of 11:49 a.m. local time, extending the year’s gain to 6.6 percent.

Growthpoint profit was boosted by the acquisition of about 35 percent of Cape Town-based Acucap Properties, which specialises in retail and office space.

The two companies are in talks that could impact share prices, they said in a separate statement today.

Property developers are facing a slowdown in South Africa as Africa’s second-biggest economy is forecast to expand at the slowest pace since 2009. - Bloomberg News



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