Star 2024-11-29

The Government Employees Pension Fund (GEPF) has identified pan-African real estate company Grit’s development subsidiary, Gateway Real Estate Africa (GREA), as a strategic platform for its rest-of-Africa real estate investments. In addition, the GEPF, represented by the Public Investment Corporation of South Africa (PIC), has injected $48.5 million (R879.9m) of cash equity as part of a $100m recapitalisation of GREA, and has appointed Zwethu Msindo as a representative to GREA’s board, a statement said yesterday. Msindo also serves as an employee-nominated trustee on the GEPF board and as chairperson of the advisory board, in addition to being a member of the investment committee and valuations subcommittee. “GREA’s consistent performance since inception in 2018 has been recognised by the GEPF as a strategic platform for its rest-of-Africa real estate investments,” said…

Growthpoint Properties will dispose of South African assets worth R2.8 billion by June next year as it seeks to improve the quality of its local portfolio while it is also eyeing some significant investments. Although it is disposing of assets, Growthpoint said yesterday it believed that there has been an improvement in sentiment towards the real estate sector in South Africa. This was in line with firming up business sentiment under the Government of National Unity (GNU). The company has now targeted non-core retail, office and old industrial assets for disposal. “Our strategy to optimise our South African portfolio focuses on improving its quality through targeted investments and disposals,” said Growthpoint yesterday. “In line with this strategic intent, we are targeting R2.8bn of asset disposals for the year ending 30…

The ever-volatile local currency eased 0.4% to R18.26 against the US dollar yesterday before recovering to R18.15/$1 in the afternoon, having been adversely affected by US President-elect Donald Trump’s forthright statements that he was determined to impose tariffs on items entering the US from Mexico, Canada and China, the US’ three largest trading partners. Having come close to breaking the key R17/$1 barrier just two months ago on positive sentiment, which would push investors into more risky assets, as well as confidence in the Government of National Unity, slowing inflation, and lower interest rates, Trump’s election three weeks ago reversed gains. The US Federal Reserve (Fed) has also turned bearish amid Trump’s threats to impose tariffs of up to 20% on imports, and 60% on Chinese goods. This has…

Discount retailer’s successful listing on the JSE helps cements Pick n Pay’s turnaround Boxer Superstores made waves with its R8.5 billion initial public offering (IPO) on the JSE yesterday, marking a significant milestone that also underscored Pick n Pay’s return to health. Pick n Pay retains a controlling stake of over 60% in Boxer. The South African grocery retail market is valued at R1.1 trillion. Boxer has approximately 68% of the discount grocery retail market and has earned its market-leading position by leading the “soft discounter” proposition in the South African market. This is aimed at delivering low prices for customers while adding additional value in the form of a slightly wider product offering than a hard discounter model, which typically offers customers only one product option. Boxer’s high sales…

The South African Department of Energy had a final session of public participation today to explain the latest revision of the draft Integrated Resources Plan (IRP). I have some reservations that I will explain below, but I still want to congratulate the modellers for listening to those of us who sent our criticism. They did take some of it to heart. I put a small thread together on twitter regarding what we can anticipate: https://x.com/hkrugertjie/status/1861466983637606783 The government finally published realistic cost comparisons for various scenarios and it admits that offshore wind and concentrated solar is more expensive than nuclear. By implication, if the cost to firm the electricity (i.e. make it reliable) is taken into account then renewable regress to the mean of large thermal generation. That detail aside, the…

President Cyril Ramaphosa will unpack South Africa’s significant new role as the incoming President of the Group of Twenty (G20) on Monday, outlining the country’s ambitions when it leads the group of the world’s largest economies. During the recent G20 Rio Leaders’ Summit in Brazil, Ramaphosa officially accepted South Africa’s responsibility for the G20 Presidency for next year. This will be the first time an African economy leads the G20 for a rotational one-year term. Vincent Magwenya, spokesperson for the Presidency, said South Africa would, under its G20 Presidency, seek to provide strategic direction in establishing a more equitable, representative and fit-for-purpose international order, in line with the main multilateral processes under the UN. Brazil held the G20 Presidency this year, and South Africa will at the end of its…