Equites to de­velop huge R90m ware­house for Fa­mous Brands

Pretoria News - - Companies - SANDILE MCHUNU ROY COKAYNE roy.cokayne@inl.co.za

sandile.mchunu@inl.co.za

PSG KONSULT re­ported dou­ble digit growth in the six months to end Au­gust, with its di­vi­sion PSG As­set Man­age­ment the star per­former hik­ing re­cur­ring head­line earn­ings by 53 per­cent.

The group re­ported 18 per­cent growth in re­cur­ring head­line earn­ings to R283.15 mil­lion, up from R239.28m com­pared to last year.

The group said re­turn on eq­uity came in at a healthy 22 per­cent.

Chief ex­ec­u­tive Fran­cois Gouws said yes­ter­day that the con­tin­ued up­ward tra­jec­tory of their key op­er­at­ing and fi­nan­cial met­rics demon­strated the re­silience of their busi­ness model and abil­ity to gain mar­ket share even dur­ing pe­ri­ods where the com­pany ex­pe­ri­enced eco­nomic head­winds.

“All of our busi­nesses con­trib­uted from this growth un­der chal­leng­ing eco­nomic en­vi­ron­ment. We were able to gain new cus­tomers and it speaks vol­umes of our busi­ness,” Gouws said.

The group’s in­come dur­ing the pe­riod in­creased by 10 per­cent to R2.28 bil­lion, up from R2.06bn while re­cur­ring head­line earn­ings per share in­creased by 18 per­cent to 21.5 cents a share, up from 18.2c.

The group de­clared a gross div­i­dend of 7c a share from in­come re­serves, up by 23 per­cent from last year’s 5.7c.

“Given our con­tin­ued con­fi­dence in busi­ness prospects, the board de­cided to de­clare an in­terim gross div­i­dend of 7c a share,” Gouws said.

The group added that its to­tal as­sets un­der man­age­ment in­creased by 19 per­cent to R230bn, com­pris­ing as­sets man­aged by PSG Wealth of R182bn and PSG As­set Man­age­ment of R48bn.

PSG In­sure’s gross writ­ten pre­mium in­creased by 25 per­cent to R2bn.

In the PSG As­set Man­age­ment di­vi­sion, Gouws said the 53 per­cent in­crease in re­cur­ring head­line earn­ings was achieved as a re­sult of an ex­cel­lent long-term track record of de­liv­er­ing top-quar­tile risk-ad­justed in­vest­ment re­turns for our clients

PSG Konsult shares closed 0.62 per­cent lower at R9.64 on the JSE yes­ter­day. LISTED spe­cial­ist in­dus­trial prop­erty de­vel­oper and land­lord Equites Prop­erty Fund plans to de­velop a 7 000m² ware­house in Cape Town for Fa­mous Brands at a cost of about R90 mil­lion.

Equites chief ex­ec­u­tive An­drea Tav­erna-Turisan said yes­ter­day that con­struc­tion of the ware­house just off the R300 on the Stel­len­bosch ar­te­rial was ex­pected to start in the next two to three weeks af­ter fi­nal sign­ings.

Tav­erna-Turisan said Equites was de­vel­op­ing the ware­house for Fa­mous Brands on a 10-year lease.

He added that it was now a great time to de­velop in South Africa be­cause con­struc­tion com­pa­nies were un­der mas­sive pres­sure as a re­sult of there be­ing lit­tle work, which meant pric­ing lev­els were good.

Tav­erna-Turisan said they were en­gag­ing with their clients and try­ing to con­vince some of the big­ger op­er­a­tors in South Africa to com­mit to de­sign­ing and de­vel­op­ing new fa­cil­i­ties that would take them for­ward for the next 10 to 15 years.

“We are dis­cussing with mul­ti­ple po­ten­tial ten­ants at the mo­ment the de­vel­op­ment of some pretty sub­stan­tial and mean­ing­ful cam­puses.

“We are qui­etly con­fi­dent that there might be some pos­i­tive ac­tiv­ity com­ing through in the next year,” he said.

Tav­erna-Turisan added that there was a re­al­i­sa­tion among users that had mul­ti­ple units all over the place that there was a more ef­fi­cient way of work­ing that in­volved fewer, big­ger units.

He said this was a trend both in South Africa and the UK.

Tav­erna-Turisan said Equites de­vel­op­ment pipe­line in South Africa, in­clud­ing projects it would be com­plet­ing this month, was about R500 mil­lion while its £55m (R1.06 bil­lion) de­vel­op­ment pipe­line in the UK com­prised three build­ings that would be com­pleted in about April next year.

Shares in Equites rose 1.62 per­cent on the JSE yes­ter­day to close at R20.65.

PSG HAS re­ported dou­ble-digit growth. /

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