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 What happens to the interest on your tax-free savings?

You may be interested in investing your savings in a tax-free savings account (TFSA). However, the amount you’re allowed to save in this kind of account is capped. So, what does this means for any interest you earn above the limit?

What does financial emigration entail?

Over the last couple of years, you’ve slowly been saving to move abroad. You’ve learned a new language, and mapped out all the places you plan to see. But should you take all your wealth with you?

6 Clever ways to spend your tax refund

After submitting your tax calculations to SARS, you may receive a tax refund. This is a tax break offered by SARS based on certain expenses. But what should you do with it? We have a look at six productive ways you can spend this money.

When to trade in your old car for a new one

You may have noticed that your car isn’t running as smoothly as it used to. This is particularly concerning if you’re hoping to sell it at a reasonable price, and buy yourself a modern alternative.

Deals

Full Body Massage at Meraki Beauty & Wellness Centre

Price: R99
When: Mondays to Thursdays
Where: Umhlanga

Archery and Drift Triking with Adventure Freaks

Price: R149
When: Mondays to Sundays
Where: Hartbeespoort

E-Bike Stellenbosch Wine Farm Tour and Wine Tasting

Price: R899
When: Tuesdays to Sundays
Where: Stellenbosch


Latest Guide

Guide to debt rehabilitation solutions