Our retail, office and industrial property portfolios in South Africa are among the country's largest. We have an interest in 58 properties in Australia through our 62.2% investment in Growthpoint Properties Australia (GOZ), 62 properties in Central and Eastern Europe through our 29.4% investment in Globalworth (GWI) and seven community shopping centres in the UK through our 52.1% investment in Capital & Regional (C&R).
The operating environment is tough on the back of the depressed macro-economic conditions. With a lack of growth drivers, and an absence of any catalyst for change, property fundamentals will remain under pressure and are expected to deteriorate further.
86% of GOZ properties are located in the growth states on Australia's eastern seaboard, in the favoured office and industrial sectors, where property fundamentals remain strong. GOZ also has a development pipeline which is expected to deliver above-average returns.
Romania and Poland
Romania and Poland are prime destinations for business process outsourcing and shared service centres given the dynamic and highly skilled labour force coupled with competitive wages.
Both regions have strong macro-economic environments and robust property fundamentals.
GWI has accretive development and acquisition opportunities.
During the year, Growthpoint expanded its international footprint with a 51.1% investment in C&R for R2.9bn. At FY20 we have a 52.1% investment. The UK REIT owns a portfolio of seven needs-based, community shopping centres, that are dominant in their catchment areas, with a value of GBP657m.