Shops for Africa Retail Listing

Posted On Friday, 06 July 2001 03:01 Published by eProp Commercial Property News
Rate this item
(0 votes)

 

Forecast return is 15,9%
Property loan stock company Shopsforafrica, which listed on the JSE Securities Exchange this week, poses a dilemma for investors. It is heavily exposed to the underperforming retail sector; on the other hand, falling interest rates are good news for the property sector.

Property-Housing-ResidentialAbout 98% of Shopsforafrica's 15 SA properties are let to retailers. The retail market is bearing the brunt of low consumer confidence and altered spending patterns, though, of these, bottom-end retailers have the better deal. Naturally, Shopsforafrica says this is the best time to get in. Management says the retail sector's woes are temporary and present an opportunity to buy further properties at attractive yields.
The group plans to expand through buying properties in other African countries where rentals are in US dollars.
Another thing to be wary of is that 44% of the company's property leases expire in 2002/2003. The company is hoping that when it renegotiates these leases, it will be able to get higher rents.
The share is almost completely held by institutions - Fedsure 29,3%, NIB 25,9%, Shoprite 14,9%, Wescape 8%.

Last modified on Saturday, 26 April 2014 08:59

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

Steilloop Shopping Centre makeover exceeds customer needs

Apr 22, 2022
Rural Limpopo's Steilloop Shopping Centre was bought by developer, GMI Property Group…

Deadline looms for energy performance compliance for commercial buildings

Apr 25, 2022
Energy certiticate
By 7 December 2022, commercial properties in specified sectors must have obtained their…

First quarter Rode’s Report raises doubts over the Sectional Titles Schemes Management Act

Apr 25, 2022
Default Image
The latest issue of the Rode’s Report has brought into question the practicality of the…

Please publish modules in offcanvas position.