Habitat Property is still aiming for a JSE listing

Posted On Monday, 16 August 2004 02:00 Published by eProp Commercial Property News
Rate this item
(0 votes)


Cape Town - Habitat Property Investments, a residential property income fund, was going ahead with its intended listing on the JSE Securities Exchange, Anton Botha, the managing director of Catalyst Property Asset Managers, the manager of Habitat, said on Friday.

Leon AllisonHabitat's listing was planned for the end of last year but was delayed. It is now scheduled for the third quarter of this year.

Botha said one of the reasons for the delay was the relatively small size of the portfolio, which stands at about R400 million.

Habitat was initially set to be listed at a forward income yield of 12 percent and a projected annual return of more than 20 percent.

An analyst said he thought the income yield was too optimistic, given the risk of the fund.

But Leon Allison, an analyst at First South Securities, was more bullish, saying that the income yields of similar funds overseas equated to a higher rating than that of Habitat.

He said overseas experience had also shown that the risk profile of residential funds was lower than that of commercial property funds and hence warranted a lower income yield (higher rating).

But locally listed non-residential property funds on the property unit trust and property loan stock boards currently trade at income yields of just above 10 percent, compared with Habitat's rating of 12 percent.

Allison said the 12 percent yield was also attractive relative to what one could get by investing directly in the residential market.

Last modified on Wednesday, 14 May 2014 11:33

Most Popular

Equites Property Fund’ prime logistics portfolio delivers exceptional returns

May 04, 2022
Andrea Taverna-Turisan
Equites Property Fund Limited today announced growth in its distribution per share of…

When is eviction legal? All you need to know about dealing with problem tenants

May 04, 2022
Buying an investment property is great, especially when you’ve chosen a good location.…

Money laundering risks on the rise in real estate

May 05, 2022
James George
Property practitioners in South Africa have been identified as potentially vulnerable to…

Fairvest to list on A2X

May 04, 2022
Fairvest Limited has been approved for a secondary listing on A2X Markets and will be…

Dipula reports solid interim results; all conditions precedent for the repurchase of Dipula A-shares fulfilled

May 05, 2022
Izak Petersen
South-African focused JSE-listed diversified REIT, Dipula Income Fund, today announced…

Please publish modules in offcanvas position.