Growthpoint said on Friday it had declined an offer from a consortium of buyers to acquire the Eastern European office focused Reit Globalworth. Picture: Mxolisi Madela/ lynette
Growthpoint said on Friday it had declined an offer from a consortium of buyers to acquire the Eastern European office focused Reit Globalworth. Picture: Mxolisi Madela/ lynette

Growthpoint declines offer for Globalworth

By Edward West Time of article published Aug 16, 2021

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GROWTHPOINT, South Africa’s largest Real estate investment trust (Reit) by market capitalisation, said on Friday it had declined an offer from a consortium of buyers to acquire the Eastern European office focused Reit Globalworth.

Growthpoint holds around 30 percent of Globalworth.

In April, an independent committee of Globalworth’s board appointed to consider the offer by Aroundtown S.A. and CPI Property Group S.A. concluded that their offer significantly undervalued Globalworth, its assets and its prospects.

The Growthpoint board agreed and therefore did not accept the offer.

Meanwhile, Growthpoint said on Friday it had commenced the development of Kent, its first greenfield sectional title residential development in KwaZulu-Natal.

The R140 million apartment project involves a standalone 10-storey building alongside the La Lucia Mall. Construction is scheduled for completion in November 2022, and Kent will welcome its first residents in time for Christmas.

Growthpoint’s KwaZulu-Natal regional development manager Kobus Blom said: “The response from buyers has been tremendous, which confirms that the Kent development answers a genuine demand for modern, quality residential accommodation for young professionals in the area.”

Last week, Growthpoint Properties also became the winner in communication and financial reporting in the property sector category of the Investment Analysts Society of South Africa (IAS) Excellence in Financial Reporting and Communications Awards.

Growthpoint has been named overall winner of these awards three times before demonstrating consistency in best practice reporting and setting a commendable benchmark.

Growthpoint financial director Gerald Völkel said the award was all the more meaningful in a year when excellence and transparency in financial disclosure and communications became more relevant than ever before in light of events around Covid-19 and the impacts it had on the financial performance and results of companies around the world.

In Growthpoint’s case, investor communication through the pandemic had included providing detailed updates and insights into its South African business, its 50 percent stake in the V&A Waterfront, and its international investments in Poland and Romania, Australia and the UK, he said.

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