Accent is on economies of scale to satisfy clients, writes David Jackson

Claremont landmark goes to property fund for R52.5m

Struggling Rondebosch-based property trust Paramount, a self proclaimed ‘new generation’ contender, is looking to crawl out of a low yielding mire with the help of banking conglomerate Absa.

Absa has probably saved Paraprop management by taking a R62m stake (34%) in this property loan stock company (PLS).

It is essential to maximise earnings from each property

It is essential to maximise earnings from each property.

Group sees massive scope for growth in listed sector, writes David Jackson.

PROPERTY loan stock company Paramount Properties has budgeted for an 8% improvement in distributions to 86,4c a linked unit for the current financial year, going against general expectations of flat distributions in the listed property sector.

NEW life is being breathed into the listed property stocks sector which is vying with cash and bonds for investors' attention. Bruce Kerswill, Director of Cape Town based Spire Property Services which brought the Paramount Property Fund Limited (Paraprop) to the JSE Securities Exchange earlier this month, says the property sector is fast regaining its popularity as an investment class.

The market capitalisation of the listed property stocks sector has more than doubled in the past six months.