Property giant Growthpoint battling to get diesel for generators to properties
The Money Show interviews Paul Kollenberg, Head of Asset Management at Growthpoint Properties, amid the power crisis.
Growthpoint Properties - South Africa's largest real estate investment trust - is battling to provide diesel to operate generators at some of its buildings.
The country is currently bearing the burden of Stage 6 load shedding as efforts continue to resolve a wage dispute with striking Eskom employees.
Motheo Khoaripe (in for Bruce Whitfield) talks to Growthpoint's Head of Asset Management, Paul Kollenberg.
Kollenberg clarifies that the company is not actually running out of diesel, as has been reported.
We're not necessarily running out of diesel, but it is a logistical nightmare getting diesel to our properties because we're running generators almost consistently for our tenants...Paul Kollenberg, Head of Asset Management - Growthpoint Properties
If we have, say 100 office properties in Gauteng and we've got generators in most of them, we have to be supplying diesel to those properties all the time.Paul Kollenberg, Head of Asset Management - Growthpoint Properties
Providing power to tenants under these circumstances involves a huge spend.
While Kollenberg says he can't quantify the cost at this point, he says it has most certainly increased the cost of doing business.
Firstly we've had to put in infrastructure, generators... We've also had to buy a bowser to take diesel around... We do our own supply plus we have external suppliers and we've had to put in storage tanks at strategic locations.Paul Kollenberg, Head of Asset Management - Growthpoint Properties
The risk is that if we carry on with Stage 6 load shedding... we're not going to switch off the lights, literally, but there may be interruptions... while we refill generators.Paul Kollenberg, Head of Asset Management - Growthpoint Properties
There is a real risk for tenants attached to not having power as many rely on the company's generators to run their IT systems and servers, Kollenberg says.
Part of the answer to resolving the crisis is using less power at each building, he states.
Listen to Kollenberg detail GrowthPoint's plans to limit power consumption in the audio below: