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Big South African Tower Property Fund seeks salvation in Croatia

Christian Fernsby |
Tower Property Fund reported a strong performance from its properties in Croatia, but weak market conditions in South Africa continued to weigh on the fund's overall performance in the six months to November 2019.

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Topics: SOUTH AFRICA    TOWER PROPERTY FUND    CROATIA   

In this environment Tower did well to keep its South African net property income unchanged for the period, chief executive Marc Edwards said.

Although the fund was “nicely hedged in Croatia”, it was also firmly rooted in South Africa, where it intended to persevere, even though the market was difficult, it said.

The distribution paid to shareholders was 4.9 percent lower at 35 cents per share as a result of additional fund costs, including interest on capital spent on the South African property portfolio.

Tower owns 43 properties in South Africa and Croatia valued at R5 billion ($330m). The six in Croatia represent 32 percent of the fund’s value. The sectoral focus is on convenience retail (48 percent by value) and offices (46 percent). The Cape Town portfolio is 47 percent, while Gauteng is 42 percent.


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