Member Profile – Sam Sproats, Executive Director Funds Management, Growthpoint Properties Australia
Sam Sproats is an Executive Director Funds Management, for Growthpoint Properties Australia, an ASX-listed Real Estate Investment Trust which invests in high quality industrial and office properties across Australia. Sam has more than 28 years of experience in real estate funds management, and currently leads Growthpoint’s funds management business.
Q: What are some current property market trends you are seeing in office and industrial property?
In the office market, there has been a clear “flight to quality” and continued focus on flexibility, which is reshaping demand for office spaces. Tenants are more focussed on who their landlord is, and valuing relationships for adaptable, modern office spaces that can support this work dynamic. On the industrial front, demand remains strong, driven by the rise in e-commerce and supply chain reshaping. Warehousing and logistics centres are at a premium, especially close to major infrastructure hubs, and we’re seeing investors and tenants place a greater emphasis on properties that can accommodate automation and efficient distribution.
Q: Is ESG becoming more important in your business?
Absolutely. ESG has moved from a “nice to have” to a critical part of our investment strategy. Tenants and investors alike are prioritising sustainability, and we’re seeing that properties with strong ESG credentials are outperforming in terms of both occupancy rates and long-term value. At Growthpoint, we’ve been proactive in integrating ESG considerations into our portfolio for some time, ensuring our assets meet high standards in energy efficiency, environmental impact, and governance practices. It’s not just about reducing carbon footprints but also about making properties that enhance wellbeing and community engagement.
The 2024 GRESB Sustainability Benchmark gave Growthpoint a four star ranking and an excellent score of 85, exceeding the peer average of 76. We were ranked second in our peer group ‘Diversified – Office/Industrial’. We also reported an employee engagement score of 75% for FY24, surpassing the January 2024 Real Estate Australia Industry benchmark of 70%.
Q: What do you see as the next phase for Growthpoint?
The next phase for Growthpoint is centred around growth of our funds management business and capital partnerships, with stable returns underpinned by our portfolio of directly owned high-quality assets. As the market cycle continues to evolve, we are focused on expanding our portfolio, particularly in the sectors of logistics, office and retail properties, while also continuing to optimise all our assets to meet new tenant demands. Innovation will be key, especially in incorporating technology and ESG enhancements into our asset management strategies. We’re also looking to strengthen relationships with our stakeholders by delivering consistent value and maintaining a forward-looking investment approach.
Q: What drives you professionally?
After 26 years in funds management, I’m driven by the challenge of constantly evolving markets and the need to stay ahead. I find fulfillment in working with diverse teams, solving complex problems, and seeing tangible results in the growth of our investors’ wealth. Building long-term value for investors while adapting to new trends, whether it’s through technology, sustainability, or strategic growth, keeps me motivated each day.
Q: How has PFA membership been of value to you?
PFA membership has been instrumental in providing access to a network of like-minded professionals and industry leaders. It has allowed me to stay at the forefront of emerging trends and connect with peers who share insights and solutions to challenges in the property sector. The educational resources and forums provided by PFA have also been key in helping me enhance my knowledge and stay informed about the latest regulatory and market shifts.
Q: Looking back on your career to date, is there anything you would have done differently?
Looking back, there’s always a learning curve, but I wouldn’t necessarily do anything differently. Every decision, even if challenging, has been a valuable lesson that has helped shape my approach to leadership and strategy. If anything, I’d say I would have leaned even more into the importance of technology and sustainability earlier on, as they’ve become such critical components of the property industry today.
Q: Do you have a favourite holiday destination?
Palm Beach in New South Wales, is one of my favourite destinations. It’s a perfect get-away being one hour from our home in Sydney, and a favourite for our family coming together. It’s our happy place!
Q: What advice would you have for someone embarking on a career in property funds management?
My advice would be to stay curious and adaptable. The property industry is evolving rapidly. Having a solid understanding of financial fundamentals, paired with a keen awareness of market trends like ESG and technology, will set you apart. Building relationships across all stakeholders is critically important, whether it’s with tenants, investors, or industry peers, those networks will help you throughout your career.
Finally, never stop learning, especially as regulatory environments and investor expectations shift.