Calulo is top fund in a sector under pressure

Posted On Wednesday, 16 August 2006 02:00 Published by Commercial Property News
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Calulo Property Fund was the top performer in the listed property sector last month in terms of total return

Andre StadlerCalulo Property Fund was the top performer in the listed property sector last month in terms of total return.

This was on the back of the purchase of a significant stake in the company by listed property loan stock heavyweight Pangbourne Properties, said Catalyst Fund Managers.

Catalyst said Calulo had a total return of 15,83% in July.

Catalyst MD Andre Stadler said the performance was "partly on the back of Pangbourne's acquisition of the 40,6% interest in Calulo held by Matemeku Property Acquisitions 104".

Pangbourne, which announced the proposed R140,3m acquisition last month, said at the time Calulo had not been attractive to investors because it did not have significant size, with properties worth about R600m.

Pangbourne, which facilitates the creation of specialised property funds for investors, plans to inject an office property portfolio into Calulo and create a larger focused office fund.

"On the back of the pricing of the deal (with Pangbourne), there was an effect on performance," said Stadler.

Spearhead Property Group was the second-best performer in the listed property sector, with a total return of 8,57% last month.

Stadler said this was driven by unit price appreciation on the back of a re-rating, following the proposed takeover bid for the company by Redefine Income Fund.

The fund last month announced that it had made a takeover bid for Spearhead in a deal valued at R1,3bn.

The listed property sector as a whole still faired relatively poorly, with a negative total return of 1,6% for July.

Stadler said this performance was a continuation of market uncertainty leading up to the monetary policy committee earlier this month.

"Following that meeting, the sector has shown positive returns and for this month to date the sector is up 5,3% in terms of total return."

Stadler said the market had also seen positive distribution growth from companies such as ApexHi and Freestone, both of which delivered double-digit distribution growth.

Hyprop Investments and Growthpoint Properties, the largest listed property company on the JSE, both recorded double-digit growth.

The listed property sector has had a torrid time since early May when listed property, with other asset classes, weakened because of higher interest rates in the US.

Though the sector recovered, it experienced another dip because of the 50-basis point hike in SA's repo rate two months ago.

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