Shops for Africa Retail Listing

Posted On Friday, 06 July 2001 03:01 Published by eProp Commercial Property News
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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

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