CNBC Africa

2021-11-30 12:18:33

30 Nov 2021 @ 12h15 - Vukile Property


Broadcast Type: Interview; Tags: Challenge, Demand, Things, Smartphones, Things, Platforms, Things, Content, Vukile, Property, Fund, Plans, Resume, Growth, Plans, South, Africa, Abroad, Recovery, Quote, Seemingly, Retail, Focused, Property

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welcome welcome back vukile property back vukile property fund plans fund to resume its growth plans in south africa and that abroad saying the recovery is quote seemingly well under way the retail focused property group resumed payments dividend its headline earnings per share increased seventy one to point three cents versus two thousand and heaps of seven point nine the six tagsent in months prior joining us to and reviews and unpack mrs lawrence wrap of vukile the ceo property fund lawrence thanks thanks for your your time time so so much much for so so let's talk about that statements in your afford guidance about you're the recovery that seeing on the ground as you described it it is seemingly under like to way and i'd understand to what degree the discovery of the new variants has injected of uncertainty a bit in that recovery and plans your growth thank you for show having me on the let me start to the first about what we're part then seeing with a recovery and we'll deal with the new variants when ready ready when we we look look at at our our experience expense in both africa and then south in spain what he finding is that sales and footfall are starting return to not only to pre covid levels in fact are starting but to exceed pre covid levels in south africa we're seeing positive trading density growth of around four point seven percent in spain and september we covid we be pre levels footfalls at ninety-six percent south africa footfall is over a hundred percent of where it was pre covid we're also seeing very significant activity from our retailers in our tenants in terms of expansion plans and see how they'll and experience in the economy so that is what gives us the confidence to that that recovery say is on track what also seeing worldwide we're is that to the extent that thereof are waves and i think we are still in that that situation now find that we every time a wave dies down you do see an immediate kicker in sales and footfall both and i think showing the resilience that is of retail as as class an asset class an asset and real estate retail ready said particularly look so when we now at this new variants obviously does an element of give concern some but if i take examples of our spanish business where spain has got a tremendously high destination right in even the fourth wave maybe on way the fifth whilst you started to see increasing infection rates you didn't see pressure system on the healthcare and you didn't see an deaths increase in very clear that vaccinations make a difference in the economy major and that's that economies that economies what allowed continue continue of operating and would like to believe is that something similar going to happen with this new variants so i think whilst it isn't an element are concerned i think we've got now eighteen months or so worth of data and experience to tell us that in fact the future is not blake things do recover when thereof are new wage you get through and then the ways the business continues very that really does well so that is where that optimism comes from so except south african in terms of the business and they were carrying recovery that recovery that the talking about you're talking about you're today we got seven read figures that we've point six million are without south africans who work and i'd like to understand what you think is driving the increased in your footfall malls and how sustainable given it is the fact that we have bleak unemployment got this picture sure i think not unemployed that is picture that's unfortunately weakened dramatically we've always because had a massive unemployment malls have always and our had very strong footfall and it is a problem that clearly be addressed in the needs to we get country as to how more people into formal employment certainly but if you look at wearables opposition you look at the type of consumers products that are are buying a lot of it is sort of non discretionary spend our customers to visit us very tend frequently with small basket sizes our average basket sizes around and forty rand one hundred so people are relying grants are relying on on money transmission i think there is an element of an economy informal economy that capture often escapes capture that often escapes so on the issue of unemployment something is that's indirect our country we have experienced a pre that it has got slightly during the covid worse environment believe that but i do not that'll opposes any our business major threat to our shoppers need to shop need the food they they need to be there and they have always supported think will continue us and i to do some notwithstanding we that desperately coal on government and business to work together to try and drive and get job creation like more people employed lines the lines the president is slower president making vaccinations looking at mandatory what's the vukile stance this on tremendously supporters we think it is the right call vukile has been very fortunate have appointed professor to barry issue to an advisor our borders from the beginning of covid so our views are not based on here so populace years rather we've got leading medical scientific advice and on it barriers consistently saying been saying it's it's about about vaccinations social distance it's about saying masks advertising and those messages i think that we carry very strongly balls entire and into the broader domains will very supportive be mandatory vaccinations throw year forward to the ahead as he do described quite conditions supportive in the south african business as the spanish business as well i so what this mean does you will likely to do what you are going to be buying and if so new malls where so i think exactly what that's we hope to do we now come through again followed of covid wanted a half years we've got two operating very very strong results and our spanish business that our south african business really are ones all of the metrics that would be delighted forward in to put a good market putting these forward would have had to deal with covid unrest in south civil africa gives amount of confidence us a huge around the resilience only of not our malls but our business model our balance sheet is is is looking very strong and we believe time that this is a good to start looking to buy into bias would would love love so yes against to to buy buy more balls in south africa in spain we would look elsewhere really is about access but it to capital at right price the we believe there are opportunities and if we can't can find creative deals certainly we would want to try and take of advantage those clients thanks so much for time i will let you go your that you but shareholders i understand to deal with that they imagine have even tougher questions then for you what you have experienced but here with us thanks arendse that the ceo was the ceo vukile of vukile of property property fund mr lawrence rap and that is how we leave and the end of the show today thanks so for much for watching as always and will do it again tomorrow the buttons