Growthpoint Properties – South Africa’s largest listed real estate investment trust (Reit) – highlighted in a Sens statement on Tuesday that only two of its shopping malls and five smaller industrial properties were affected in the riots that gripped KwaZulu-Natal last week.
While none of its properties in Gauteng or the rest of the country were affected, the Watercrest Mall in Hillcrest and City View shopping centre near the Durban CBD were the group’s worst-hit properties.
Both centres have Shoprite group branded stores as anchor tenants, which were affected by the looting and damage. Shoprite also revealed in a Sens update on Tuesday that more than 200 of its stores in KZN and Gauteng were affected by the unrest.
Over 200 Shoprite group stores looted in last week’s unrest
The scale of the destruction
Growthpoint said the two retail properties were “impacted by extensive looting and related damage” but represent 4.64% of its total retail gross lettable area (GLA) within its South African property portfolio.
However, together with the other five industrial properties in KZN that were impacted, it pointed out to stakeholders that the affected properties in KZN represents just 2.3% of its total South African (property portfolio) GLA.
Growthpoint noted in its Sens statement that it owns a 50% stake in Watercrest Mall, which has a total GLA of 45 318sqm (its 50% stake equates to 22 659sqm).
“All common areas and tenant premises [at Watercrest Mall] were looted with extensive damage to shop fronts and air conditioning, with vertical reticulation still to be assessed,” it said.
“Fortunately,… there was not any structural damage to the building and cleaning has commenced by our staff, cleaners and the local community,” the group added.
With regards to City View (once known as Game City Shopping Centre), Growthpoint wholly owns the 40 362sqm centre.
“All common areas and tenant’s premises were looted. Looters attempted to burn down the delivery area and road facing tenants on multiple occasions, but the fires were quickly
extinguished,” it said.
The group added that looters, however, did cause some damage to the air conditioning system and electrical reticulation at City View, which has affected a portion of the centre’s electricity supply.
“Sprinklers were activated and there is also resultant water damage. A professional team has been engaged and they are busy quantifying the damage on both [retail] sites,” Growthpoint said.
With regards to the five industrial properties impacted in KZN, Growthpoint said that these represent around 2.73% of the group’s total industrial GLA in South Africa.
Affected properties include:
- The Runway park facility (12 160sqm) – property breached and looted. Access to this pharmaceutical facility has been restricted and the damage is still to be assessed.
- The adjacent Runway Park JV, which is 50% co-owned and measures around 28 886 sqm (Growthpoint’s share equates to 14 443sqm). The property was also breached with “severe looting and fire damage to offices”.
- A 5 816sqm Inanda Road property, which is multi-tenanted and was partly looted, but had minor property damage.
- Lanner Place – a 14 446sqm multi-tenanted facility, which was severely looted with minor property damage.
- Ficus Place – a 9 886sqm facility which suffered minimal looting with damage to the perimeter fence.
- Goodwood Road (previously African Gabions) – a 5 314sqm facility severely looted but with minor property damage.
“All properties are insured for business interruption and with Sasria,” Growthpoint has noted.
Read: Can Sasria honour claims of up to R30bn?
“The company continues focus on reinstating trading and operations at all these affected facilities but is monitoring the volatile situation.”
“Ensuring the safety and security of our staff, centre management, tenants and shoppers, as well as our assets remains paramount. As such additional security has been deployed to high-risk assets,” Growthpoint added.