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Smaller shopping centres seem to be doing better as Fairvest Property Holdings, the landlord that owns centres in densely populated areas and central business districts recorded a 1 percent growth in the value of its properties.
This comes as owners of big high-end malls like Hyprop and Attacq who respectively own Canal Walk and Mall of Africa saw multi-billions being wiped off their property values because of lower rental rates that they expect when tenants’ leases come up for renewal
over and above the losses caused by rental discounts that the lockdown forced them to offer tenants.
While Fairvest recorded a negligible growth in its like-for-like property portfolio value to R3,5 billion, Attacq’s South African portfolio valuations decreased by 8,6 percent and Hyprop recorded a 13,9 percent decline to the value of R4 billion in its local portfolio. Fairvest is focused on the lower LSM market and owns centres like the Nyanga Junction in Cape Town and some Boxer Centres in the Eastern Cape to name a few.
The group also record much less decline in distributable income at 3,4 percent while its bigger peers saw this fall by double digits, well above 30 percent in some instances. — Reuters.
Peter Tanyanyiwa
Online Reporter