Saturday, 20 August 2016 09:36

Rockcastle Global Real Estate aiming high

Written by
Rate this item
(0 votes)

Rockcastle Global Real Estate is on track to become a fund split 50-50 across direct and indirect real estate.

Spiros_Noussis

Rockcastle Global Real Estate is on track to become a fund split 50-50 across direct and indirect real estate.

CEO Spiro Noussis says the company’s direct property assets will be focused in Poland, but the fund will also be exposed to other markets in Eastern Europe, including the Czech Republic.

“Poland is now our base. We are finding opportunities in Hungary and the Czech Republic too, but our largest assets will be shopping centres in Poland,” he says.

Poland’s economy is set to grow about 3.5% this year.

Rockcastle declared a dividend of US0.048/share for the six months to June 2016. This represented an increase of 8.2% over the comparable prior period, but was within guidance of between 8% and 10%.

Rockcastle’s board has forecast a growth in dividends of between 11% and 13% for the six-month period to December 2016 against the same period in 2015.

The group is now worth about R33bn and could be looking to acquire other funds in Eastern Europe to maintain its aim of delivering double-digit dividend returns for every sixmonth period.

The listed portfolio includes stakes in Simon Property Group, the largest listed retail property fund in the US, UK mall-owner Hammerson and Paris-based Unibail Rodamco.

Management’s decision in the first quarter of 2016 to reduce gearing, as well as the company’s investment bias towards the US, UK and European markets, has provided substantial protection from market volatility.

At roughly R35 a share, Rockcastle is an attractively priced share with upside potential.

There is a possibility that Romanian-focused New Europe Property Investments may make a takeover bid for Rockcastle in the future. Both funds are operating in Eastern Europe and were formed by professionals from SA’s Resilient group of real estate companies.

source: Financial Mail

Last modified on Monday, 22 August 2016 12:06

Most Popular

Ballito Junction Regional Mall is crowned the best new shopping centre in South Africa

Sep 22, 2017
Aerial image of Ballito Junction
Ballito Junction Regional Mall has been named the best new shopping centre development in…

Jones Lang LaSalle South Africa 2017Q2 reports reveal useful trends on industrial, office and retail property sectors

Sep 21, 2017
Christian Ulbrich
Real estate consulting firm, JLL South Africa, has released its Q2 2017 research reports…

Rode & Associates says Capitalization rates are now firmly on a rising path

Sep 22, 2017
Johan Hattingh
Property, whether directly held or listed, was the darling of South African investors…

ADvTech Properties to expand asset base to R6bn by 2022

Sep 26, 2017
Vongani Mbhokota
The properties division of JSE-listed ADvTECH, Africa’s leading private education…

Esther Mahlangu attends the grand opening of Phola Mall

Sep 29, 2017
Phola Mall Grand Opening
Month-end saw the grand opening of Phola Mall, the first fully enclosed regional shopping…