© PLSA 2011
Having endured a few lean years, corporate activity in South Africa’s listed property sector has picked up markedly this year. Investec Property Fund SA Limited listed in April, with a market capitalisation of R1.7 billion, while Rebosis Property Fund Limited listed in May with a market capitalisation of R2.2 billion. At the same time, Hyprop Investments acquired a R9 billion portfolio from Attfund Retail and Growthpoint Properties acquired an undivided 50% share in the V & A Waterfront. Old Mutual is expected to list a R12 billion portfolio later in the year, while a number of smaller listings are planned over the next 12 months.
This corporate activity is likely to boost the market capitalisation of the Property Unit Trusts and Property Loan Stock companies to a level in excess of R150 billion. This should attract larger institutional investors as well as large foreign investors who have historically shied away from the sector because of the perceived lack of liquidity. Importantly, this growth has been achieved without compromising on the quality of the average listed property portfolio. If anything, the listed property sector will offer investors, both large and small, access to arguably the highest quality portfolios in South Africa. The sector will house a number of South Africa’s dominant super regional shopping centres, corporate headquarters and the country’s largest distribution centres.
Ian Anderson, CFA
Chief Investment Officer
Grindrod Asset Management
Tel: +27 (0)31 333 6677