Tower saves R1 mln in OP costs at Cape Quarter

by admin 0

“The focus of the fund’s greening strategy is on improving energy efficiency which serves to reduce operating costs and lower carbon footprints to make properties more valuable and marketable to prospective tenants,” [DATA TWR:Tower Property Fund] said.

“The lighting retrofit programme completed at the Cape Quarter has resulted in an estimated annual saving of one million rand in operating costs. This programme is expected to reduce kilowatt hours and carbon emissions by 69 per cent.”

The South African investment fund, which made its debut on the Johannesburg Stock Exchange in July 2013, also indicated that the reduced demand for energy mitigates against inevitable electricity tariff hikes.

“Management views the ‘greening’ of its properties as a proactive rather than defensive strategy,” the company said.

“Tower aims to generate competitive investment performance by adding value through property asset management and the cost-effective greening of properties in the portfolio.”

(READ MORE: Tower Property reports 85 million rand revenue)

The group’s revenue stood at 191 million rand for the year ending 31 May 2014 with revenue from retail property, excluding straight line lease adjustments, amounting to 47 million rand.

“Cape Quarter, the flagship property in the portfolio located in Green Point, Cape Town, is now effectively fully let following an innovative marketing campaign which has been successful in driving foot traffic and attracting national and international tenants.

“Tenants have generally reported increased turnovers and Tower has engaged architects to address concerns with the centre’s navigability as well as seeking to create new lettable areas within the property.”

The group’s net operating profit stood at 161 million rand and profit before taxation was reported at 86 million rand.

Tower’s basic and diluted earnings per share, the weighted average shares in issue, stood at 82 cents for the 2014 year.

“Management will continue to enhance the portfolio and investor returns through careful cost control of its existing portfolio and the continued roll out of greening initiatives. Well located, quality properties will be sourced to strengthen the portfolio and reduce risk to particular properties,” Tower said.

(WATCH VIDEO: Tower Property’s expansion plan)

“Over one billion rand of new acquisitions are being negotiated and management is currently undertaking extensive due diligence on these properties. Refurbishment opportunities within the portfolio will be examined as will the pipeline of development opportunities which are becoming apparent.”