Property: Growthpoint, Arrowhead exposure small

PROPERTY companies Growthpoint and Arrowhead reported yesterday that they had “insignificant exposure” to African Bank Investments, which applied for business rescue and was subsequently placed under curatorship. African Bank’s shares lost about 90 percent of their value in three days last week after the bank said it would report record losses this year and the resignation of its chief executive Leon Kirkinis. Imraan Suleman, the chief financial officer of Arrowhead, said yesterday its exposure to African Bank and Ellerines was about 1.3 percent of the fund’s billings and it did not believe the financial situation at African Bank would have any impact on the performance of Arrowhead. “The particular space pockets occupied by these entities are located in nodes in which strong levels of demand for retail space is experienced. We are confident on the prospects of reletting these pockets should the need arise,” he said. Growthpoint said its overall exposure to African Bank was immaterial and comprised about 0.7 percent of its total local property portfolio, excluding the Victoria & Alfred Waterfront, which did not have any exposure to the group. – Roy Cokayne