How Low Can Yields Go?
29 June 2007
The South African listed property sector, which recently surpassed the R100bn market capitalisation threshold for the first time, could again double in size over the next two years, as the much talked about foreign investment flow into local real estate stocks starts to materialise.
That will see listed property yields drop even further from already record lows of around 6% – down from an average 15% in 2002. Will yields converge to the international norm of between 2% and 4% or will SA-listed property retain its value proposition? Read more
Long-term Lease Stamp Duties Capped
13 June 2007
Thanks to focused lobbying by Sapoa and its Property Management Committee, stamp duties on fixed property leases have been reduced in the latest amendments released by SARS last month.
Stamp duty on short-term leases has been abolished and duty on longer-term leases has been capped, explains Jay Junkoon of Sapoa’s Property Management Committee. Read more
Rate hike could choke the listed property market
Jun 04, 2007: The Reserve Bank is set to take action against brazen spendthrift behaviour on Thursday.
Although the long-term good prospects for listed property may still be intact, the rich returns offered by the sector makes it especially vulnerable in the short term to a possible further interest rate hike. The market consensus is that the Monetary Policy Committee (MPC) will announce a 50-basis point rate hike on Thursday; a fair number expect this to be followed up by an additional rate rise in August. Read more
African Capital to benefit from PIC takeover bid
By “Nick Wilson(Business Day)
NEWLY established empowerment property group African Capital Property Portfolio is poised to benefit from the Public Investment Corporation’s (PIC’s) proposed takeover bid for listed property loan stock company CBS Property Portfolio.
African Capital, which is seeking to expand its fledgling property portfolio to R2bn within five years, said the takeover bid would make PIC a 45% equity partner in African Capital and improve its funding capacity to conclude acquisitions. Read More
SA’s Commercial Market Is Top
May 30, 2007
Though South Africa lost its position as the world’s best performing commercial property market to Ireland last year – on the back of a noticeable dip in returns from shopping centres – we’re likely to be the place to be for international investors over the next two years. Read More
Source – www.property24.com
Best route for an investor to take to invest in real estate?
May 24, 2007: What is the best route for an investor to take who is looking to invest in real estate? Should they buy an investment property and let it out, or would they be better off putting their funds into a listed property vehicle?
Listed property refers to Property Unit Trusts (PUTs) and Property Loan Stocks (PLSs) which are professionally managed portfolios of property, and are listed on the JSE Securities Exchange. Read more
Source – www.property24.com
Another property listing succumbs
May 14, 2007:
Last month the Public Investment Corporation (PIC) made a surprise bid to buy out CBS Property, the highly rated Cape-based property fund. The PIC, which basically represents the Government Employees Pension Fund, already holds 13% of CBS.
If the deal is successful it will follow hard on the heels of a host of similar deals, most notably Spearhead (acquired by Redefine), Prima Property (now part of Apex-Hi), Good Cape (acquired by Calulo) and Paramount (now controlled by Growthpoint).
Source: Cape Business News – www.cbn.co.za
Company trust combo finds favour
16 May 2007 :
COMMERCIAL property investors often ask what the best way is to structure their commercial property holdings.
According to commercial dealmakers, Bales Delaporte, while each investor obviously has their own circumstances, there is one way that has found favour with many of the astute and experienced property investors – the Company Trust Combo. Read More
Listed property sector at R100bn milestone
11 May 2007
By Nick Wilson
The sector has enjoyed massive growth in size and popularity as an asset class since January 2000 when its total market capitalisation was a meagre R7,2bn.
By Thursday its total market capitalisation was about R100,5bn. Read More
Listed Property Yields Growing
According to Macquarie First South’s Leon Allison, South African listed property will yield 9,1% one year forward, growing to a yield of 9,9% in year two. “Real growth is much higher that it has ever been in South Africa,” he says. “Effectively it is seldom that it gets as good as it is now. Read More