SA’s biggest property company “Growthpoint” had suffered from a great loss of R1 billion around the year in the 12 months through June, compared to a loss of R921 million in the previous year. Revenue advanced 9% to R5.8 billion.
Growthpoint is now moving ahead to raise as much as R1.5 billion in bond sales for expansion and to refinance debt. According to a statement from Chief Executive Officer Norbert Sasse “We need to look forward the next 1 to 2 years on our total funding requirements.”
72% of the Growthpoint’s debt is held in bank facilities and 27% in bonds. Sasse says ”We are planning for another couple of bond issues, which is not only for expansion but also for managing overall treasury.”
After having failed in the bidding for Fountainhead Property Trust earlier in 2013, the company is planning to build its portfolio of shopping malls.
They had to touch the ground as the share fell as much as 3.2%, the biggest intraday decline in more than a week and closed at 1.39% lower at R23.49 in Johannesburg. looking at the stocks which were found to be declined 4.5% this year, along with a 4.2% fall on the 22 member FTSE/JSE SA property index.
The share price which are driven by bonds are highly under pressure as per the comments by U.S. Federal Reserve Chairman Ben Bernanke.
