Redefine gains over 10% on strong full-year performance

Redefine Properties, a leading property company, saw its shares surge by over 10% following the reinstatement of a dividend that was cut last year due to the impact of the COVID-19 pandemic. The company also made headlines with its bid to acquire the remaining stake in Poland's largest retail landlord, EPP. CEO Andrew Konig discussed these developments in an exclusive interview with CNBC Africa. Konig highlighted the gradual return to normalcy in office spaces, noting that people are eager to return to the office after extended periods of remote work. He emphasized the importance of flexible working arrangements and the need for human connection that offices provide. While office spaces are expected to see a slower recovery, other sectors like retail and industrial properties are showing signs of improvement. The property market has been characterized by oversupply in the office sector, leading to pressure on rental prices. Konig mentioned that rental revisions are still a challenge, particularly in the office segment, but the situation is expected to improve as demand picks up. He also addressed the trend of converting offices to residential spaces, stating that most viable conversions have already been executed. The announcement of a potential acquisition of EPP played a significant role in the surge of Redefine Properties' share price. Konig explained that the acquisition would position Redefine as the largest retail landlord in Poland, diversifying its asset portfolio and geographical reach. The move signals a strategic expansion for the company and reflects its long-term growth strategy. Amid the ongoing COVID-19 pandemic, Konig commended tenants and visitors for their adherence to safety protocols at Redefine's properties. He underscored the importance of responsible behavior in managing the public health crisis and highlighted the balance between health measures and convenience for occupants. Konig also shared a tip for streamlining entry procedures through access cards to minimize inconvenience for regular visitors. The property sector's response to the pandemic, coupled with strategic growth initiatives like the EPP bid, has positioned Redefine Properties for resilience and expansion in a challenging market environment. With a focus on adapting to changing trends and fostering tenant relationships, the company aims to navigate the uncertainties of the post-pandemic era and capitalize on emerging opportunities in the real estate industry.