Old Mutual Property: Market Highlights

Posted On Monday, 22 October 2012 10:37 Published by eProp@News
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The September release of the South African Reserve Bank (SARB)’s quarterly bulletin provided some key national accounts and balance of payments data for the second quarter (Q2) of 2012. Of particular significance for the commercial property sector will be the deficit on the current trade account which recorded its largest deficit in nearly four years during Q2 as exports declined, mainly as a result of muted global demand.

Property-Housing-Residential Capacity utilisation, although at an 18-month high, is still some way off the highs of 2004–2008, implying that the manufacturing sector is unlikely to see much in the way of expansion in the short term.
 We expect the demand for lower-grade manufacturing space to remain muted on the back of softer manufacturing volumes and the prospect of a weaker currency.
 In the industrial sector, our preference lies with quality warehouse property where demand could be supported by increasing inventories as a result of manufacturing sales

SA Corporate Real Estate Fund (Listed Real Estate)

In line with its strategic objective to maximise unit-holder returns, SA Corporate Fund is pleased to announce an interim distribution of 15.17 cents. Distribution growth is 5.7% higher than the previous interim distribution, and 4.8% higher than the December 2011 year-end distribution.
 Highlights from the June 2012 interim results include a net income growth of 5.5% on the Fund’s standing portfolio, as well as improved retentions and positive reversions;
 SA Corporate is well funded for opportunities and the strategic focus will be on quality acquisitions in order to continue maximising unit-holder returns.
 The distribution of 15.17c per unit was paid out on1 October to unit-holders.
 In September, Coronation Asset Management increased their beneficial interest in the fund to 5.19%, an indication that the strategic objective of the fund to maximise unit-holder returns is being noted by the market.

Triangle Fund (Direct Real Estate)

The Fund has done well to reduce its vacancies, especially within its industrial portfolio, this being in line with the reduced IPD vacancy rate for the sector. Along with arrears, vacancies continue to be actively managed on a day-to-day basis.
 The Fund continues to show favourable total returns, with steady growth found in both capital and income returns. The portfolio’s super regional shopping centres continue to outperform the IPD benchmark.
 The Fund intends improving the overall portfolio yield and returns on a short- and long-term view by disposing of the properties that are expected to underperform

Last modified on Monday, 21 April 2014 09:48

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