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 It’s possible to change your marriage regime

Many people wed before they sign an antenuptial contract (ANC). This is especially practiced by people in customary marriages and those not clued up about the ANC. The law says if there’s no ANC before the wedding takes place, the marriage will automatically be in Community of Property. 

Keep this in mind when taking out new financial products

Adding a product to your personal finance portfolio, such as insurance or an investment, is a big decision. We found out what you should keep in mind before taking out a new product, how you can assess the products you already have, and how you can generally improve your financial position.

Are you in debt denial?

With debt levels increasing at 13% more than income levels, South Africans are more debt-stressed now than arguably ever before. This is iterated by the National Credit Regulator’s (NCR) report that nearly half of credit-active consumers in South Africa have damaged credit records. However, only a few seek the necessary help.

Why should you invest in a mutual bank?

Often when people think about banking, they always think about commercial banks. Mutual banks hardly come to mind, but these banks offer investment opportunities that are often overlooked.

 

Deals

Aurora Spa 100-minute Treatment Special

Price: R449
When: Until 31 March
Where: Century City

Woodstock Grill and Tap Steak Thursdays

Price: R100
When: Thursdays
Where: Woodstock

KFC 5+5 Special

Price: R65
When: Until 25 February 2020
Where: Nationwide