The share price of retail tycoon Christo Wiese’s property group rose on Thursday morning after it reported nearly tripled revenue and asset value
The share price of retail tycoon Christo Wiese’s property group, Tradehold, rose 5% to R18.38 on Thursday morning after it reported nearly tripled revenue and asset value.
Tradehold, which reports in pounds because it was historically a UK-focused property group, grew interim revenue 165.5% to £55.5m during the six months to end-August from the matching period in 2016.
Finance costs of £27m, however, saw its after-tax profit decline 23% to £12m.
Its total assets at August 31 were £994m, 161.7% growth from £380m in the previous year.
During the reporting period, Tradehold’s UK subsidiary, Moorgarth, acquired the shopping centre next to Edinburgh’s main railway station, Waverley Mall, for £24.7m in partnership with the Moolman Property Group.
In Namibia, Tradehold recently completed the £29m Dunes Mall in Walvis Bay in partnership with Atterbury Property Group.
The Town Lodge, which forms part of The Steps development in Windhoek, was also completed during the same period.
Meanwhile, construction has started on the 10,000m² shopping mall in Gobabis to be anchored by Shoprite. The completion date had been set for November 2018, the interim results statement said.
Tradehold intends to list its Namibian properties on the Namibian Stock Exchange.
Besides property, Tradehold owns some financial services companies, including Mettle Investments, which it intends unbundling into a separate listing on the JSE.
“Bedding down the restructuring of Tradehold into two fully independent and focused entities will be a major objective of senior management in the coming months. As its financial services division at this stage represents only about 6.5% of total assets, the aim will be, once it is on its own, to grow this business strongly over time both organically and through acquisitions,” Wiese said in the statement.
“In the case of the property division, the aim will be not so much to add to the size of the portfolios in its main markets but to use the excellent platform they already offer to unlock the full potential of the individual properties owned.”