Thursday, 20 October 2016 13:19

Caution first over Brexit uncertainty

Written by
Rate this item
(0 votes)

Value of shopping centre owner New Frontier Properties' assets has been under pressure.

 Garreth_Elston

The value of shopping centre owner New Frontier Properties’ assets has been under pressure, with the company cautious about making new acquisitions in Britain, so soon after the referendum in favour of the UK leaving the EU.

New Frontier, which on Monday reported results for the year to August, said it would proceed with caution until the uncertainty in the UK economy had eased and there was more clarity on the state of the property investment market.

The group’s total comprehensive income for the period, according to International Financial Reporting Standards, was a loss of £6.37m, which incorporated the writing off of the acquisition fees associated with the acquisition of The Houndshill Shopping Centre in Blackpool, the fall in valuation of its three retail investment properties and the mark to market value of the financial derivatives taken out to fix the company’s interest cost.

The company is 67.5%owned by JSE-listed Rebosis Property Fund. East London businessman Sisa Ngebulana, who is CEO of Rebosis, invested in New Frontier in order to diversify Rebosis’s investments.

Garreth Elston, a fund manager at Alternative Real Estate Capital Management, said there were concerns that New Frontier’s assets, many of which were in secondary UK cities, could come under further economic pressure soon because of the Brexit process.

The board declared a dividend of 4p per share for the reporting period and this, combined with an interim dividend declared earlier in 2016, totalled 7.6p per share.

source: Business Day

Last modified on Thursday, 20 October 2016 13:34

Most Popular

The Property Practitioners Bill set to transform the entire property market

Sep 19, 2017
Storme Heath CAF2
Gazetted in March 2017 for comment, the long-awaited Property Practitioners Bill is…

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…

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…

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…