About 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%.