Higher earnings expected

Paramount Property Fund (Paraprop), a listed loan stock company, is engaged in negotiations on several property acquisitions

Suggestions that the listed property sector, the likes of property unit trusts and property loan stock, is coming off the boil, are premature says Rodney Luntz of property consultancy, Abro Luntz.

Cape Town - The portfolio committee on finance's tortuous efforts to finalise the Municipal Finance Management Bill hit another stumbling block on Friday when it heard widely contradictory legal interpretations about the government's ability to place limits on municipal revenue-raising decisions.

A year ago Mike Flax, Chief Executive Officer of Spearhead Property Holdings, the JSE listed property loan stock company, said that he expected to be able to triple the company's R350 million property portfolio within five years

While some large property funds are optimistic about the market, others believe it could stay flat for the time being despite reports of excellent returns.

Investor interest in property unit trusts, loan stocks

Ten smallholdings, all located in a security complex in Gordon's Bay, are to be sold by auction next week.

Prima, Corpcapital's latest listed property fund, establishes what was once a small-cap banking group as SA's biggest and best-performing player in listed property.

Property unit trust company Allan Gray Property Trust (Grayprop, GRY) declared a distribution for the six months ended March 31 of 15 cents per unit - in line with the forecast in the annual report.