Gerald Nelson, MD of Grapnel Property Group, which will be managing the fund with hotel specialists Horwath Tourism and Leisure Consulting, says the company has a lot of "potential property acquisitions in the pipeline". The company, with property assets of R1,1bn, listed on the JSE's main board on February 16.
"We think there is capacity to grow the fund comfortably to around R4bn in asset value over three years," says Nelson.
It has experienced steady demand for its units since listing, and analysts say market appetite for specialist such as Hospitality was strong.
Nelson says there will probably be more specialist property funds coming to the market in future.
"As normal commercial property becomes scarcer and more difficult to obtain, there will be natural progression towards specialised funds," he says.
The prices of Hospitality's A and B linked units increased 30% and 22% respectively in its first month of trade on the main board.
Business Day
Publisher: I-Net Bridge
Source: I-Net Bridge
