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Old Mutual Property pulls fund listing

Posted On Monday, 08 August 2011 02:00 Published by
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Old Mutual's decision to withdraw its planned listing of its R12bn Triangle Real Estate Core Fund had deprived investors of the chance to own some of SA’s premier retail assets, as well as the opportunity to significantly increase the listed property sector’s market capitalisation, analysts said last week.

Ben KodisangOld Mutual Property MD Ben Kodisang said the reasons for pulling the listing was because the market — particularly internationally — had changed.

"As announced last year, Old Mutual was aiming to raise approximately R5bn in new capital, potentially representing one of the largest initial public offerings in SA, and therefore international capital markets would need to be accessed in addition to local markets," he said.

Kodisang said achieving optimal pricing on a listing of Triangle’s size required "good local and international market conditions". Analysts had hoped that the listing would increase the listed sector’s critical mass and overall liquidity.

Meago Asset Management portfolio manager Jay Padayatchi said apart from the benefit of choice for the investor, the Triangle listing would also have increased the overall size of the sector, whose market capitalisation is sitting at around R130bn

Triangle’s portfolio includes Gateway Theatre of Shopping, Menlyn Shopping Centre and Cavendish Square. The Triangle Real Estate Core Fund, managed by Old Mutual Property, consists of a mix of 40 prime retail, industrial and office properties launched in July 2007.

Padayatchi said the only listed retail offering of a similar calibre was Hyprop , particularly after its acquisition of the Attfund retail portfolio.

Investec Asset Management portfolio manager Angelique de Rauville said SA’s listed property sector, which accounts for 2,82% of the JSE’s market capitalisation weighted index, was due to benefit from a number of new listings during the course of this year including, but not limited to, Old Mutual’s Triangle Fund.

Last modified on Thursday, 24 April 2014 17:13
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