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 Personal loan or business loan? The best way to finance your business

When starting your own business, you may have to rely on external funding. Perhaps you qualify for a personal loan, but would it be better to take out a business loan instead? We got in touch with a specialist to find out whether it’s best to take out a business loan or a personal loan to assist you with your ongoing business or start-up.

What to do when you’ve been denied a home loan

After months of scanning property sites and attending showhouse after showhouse, you’ve finally found what you’ve been looking for. But your dream of owning a home comes crumbling down when you receive the news that you’ve been denied a home loan. So, what now?

Best travel cards offered by top South African banks

Planning a trip abroad involves a lot of administration. You need to consider travelling arrangements, reasonable accommodation, and a daily itinerary. But have you considered how you’re going to pay your bills once you arrive? Besides considering bank costs, you also need to consider exchange rates.

Best ways to save your money short-term

For many, it seems close to impossible to save when spending on holiday getaways, Christmas gifts, while also trying to ensure there’s money left to survive January. Justmoney takes a look at the best ways you can save during the short term.

Deals

Takealot January Big Sale

Price: Available on request
When: Until 31 January 2020
Where: Online

Annique Restore Package Special

Price: From R600
When: Until 31 January 2020
Where: Centurion

Ster-Kinekor Senior Citizens Discount

Price: Available on request
When: Daily
Where: Nationwide