Covid-19 pandemic is expected to take a toll on JSE-listed property companies with investments in Europe
The different levels of a Debenhams department store are seen at Intu Properties' Watford shopping centre in the UK. Picture: REUTERS/PETER NICHOLLS
These decisions could affect a number of SA property companies’ investments. SA property companies and income-paying real estate investment trusts have spent the past decade investing mostly in Central and Eastern Europe in search of better returns. As much as 45% of SA’s listed property sector by value is located outside SA.
On March 14, the Polish government ordered shopping centres and retailers to close for at least 10 days, though grocery stores and pharmacies remained open. There have been forced mall closures in Bulgaria. Lighthouse Capital, which owns one mall in Portugal and another in Slovenia, said it had also been affected by the virus. “The Slovenian government issued a decree closing all non-essential stores in Slovenia, where one of the shopping centres owned by Lighthouse, Planet Koper, is located. At this stage, no indication has been given as to when the decree will be retracted,” it said.
Vukile Property Fund said it was waiting for an announcement from the Spanish government on Tuesday regarding financial support for companies and businesses hit by the virus. Vukile’s 82%-held Spanish subsidiary, Castellana Properties, operates six shopping centres and 10 retail parks across Spain. Shopping centres being partly shut and other measures could be put in place in SA soon, the head of listed property funds at Stanlib, Keillen Ndlvou, said.
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