Guiding consumers since 2009

Market volatility dampens listed property

By Staff Writer

Nick Wilson

Property Editor

GLOBAL market woes and local interest and inflation rates uncertainty continue to dampen the listed property sector, with the South African listed property index losing 4% last month.

Catalyst Property Fund Managers, which releases a monthly listed property report, said yesterday the performance of the sector had been “driven by the contagion effect of weak global markets, as well as the continued uncertainty regarding inflation and interest rate expectations domestically”.

These factors have caused volatility in listed property unit prices. Catalyst Fund Managers MD Andre Stadler said the length of time that the volatility would continue was dependent on how “the macroenvironment plays out”.

This volatility could affect corporate activity in the form of proposed mergers between listed property companies and funds, which have characterised the sector in recent months.

At the end of last month, 11 out of 25 listed counters were trading under cautionary announcements relating to merger and acquisition activity.

Catalyst said the most recent and largest of the potential mergers was the “proposed amalgamation” of Madison Property Fund Managers, Redefine Income Fund, ApexHi Properties and Hyprop Investments, which could create a company with a market capitalisation of about R24bn.

Acucap Properties has also indicated it would be keen to acquire listed property unit trust Sycom.

Other potential mergers on the horizon include those between Diversified Property Fund and Resilient Property Income Fund, as well between Pangbourne Properties, iFour Properties and Siyathenga Property Fund.

Recent Articles

Featured Is a home loan a great savings tool?

There are many saving and investment options available to consumers. What you decide to use is dependent on your circumstances. But should you make your home loan your choice of a savings vehicle and how does that exactly work?

Everything you should know about tax auto assessment

In 2019, the South African Revenue Service (SARS) launched a system, which was dubbed an “auto assessment”, to assist taxpayers with their annual tax returns. But what does this system entail, and how will it impact you?

What does it mean to be a registered Financial Services Provider?

You may have noticed that financial institutions state that they’re registered Financial Services Providers (FSP). But what does this actually mean, and how does this benefit you as a consumer?

Should the retirement age change?

Across the world, people are retiring later than they used to. However, retirement products are centred around set retirement ages at which point you’d be able to access your retirement savings. But how applicable is the current retirement age in South Africa?

Deals

Earn up to 50% of your tax return submission fee back in eBucks

Price: Available on request
When: Daily
Where: Nationwide

Be part of the Belly Of The Beast Weekday Spring Special Lunch

Price: R350
When: From 23 September 2020
Where: Cape Town

Tony’s Roma Breakfast Special

Price: R39
When: Daily
Where: Cape Town


Latest Guide

Guide to debt rehabilitation solutions