Growthpoint warns current economic climate weighs heavily on its properties.
Business confidence numbers are out today - at 21 year lows.
This means that companies like the big real estate investment trust Growthpoint is reporting a big jump in offices vacancies, reflecting the mounting gloom that's being felt in the economy.
It's really desperate. You know if you consider business confidence. I've been involved in GrowthPoint in one way or another for almost 20 years. It's fair to say this would be the worst six months that I've seen in all this time.Norbert Sasse, Chief Executive Officer - Growthpoint
I think one thing that people don't often appreciate is just what it takes to run a portfolio operationally. It's a fully operational business - we see the challenges of loadshedding, of generators, of refuelling. In the Waterfront in particular hundreds of generators need to be refuelled daily. It's an operational nightmare.Norbert Sasse, Chief Executive Officer - Growthpoint
I think the only time I've seen vacancy rates worse was in the very early stages of starting to build Growthpoint - probably in early 2000.Norbert Sasse, Chief Executive Officer - Growthpoint
Listen to the full interview below.
Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning.
This article first appeared on 702 : Growthpoint warns current economic climate weighs heavily on its properties.
Source : https://www.123rf.com/photo_42930152_red-for-rent-real-estate-sign-in-front-of-beautiful-house-.html