Global Credit Ratings affirmed its initial rating assigned to Delta Property Fund Limited of BBB+(ZA) and A2(ZA) in the long and short term respectively. The outlook was accorded as Stable.

DEMAND for first-time capital market funding among the JSE’s newer property listings has largely been put on hold since market conditions changed in May and June. 

Deals such as New Europe Property Investments’ (Nepi’s) proposed acquisition of a Romanian retail park’s debt are more common in Europe than in South Africa, reflecting the relatively healthy state of South Africa’s listed property and banking sectors, analysts say.

With limited targets up for grabs in the market, many listed property groups are taking advantage of the cheap funding environment to restructure their debts and improve the quality of their existing portfolios.

SA property funds looking to raise capital are increasingly turning to capital markets rather than the traditional method of borrowing from banks or even securitisation.

Funding via the bond market is considered as more transparent than conventional debt, with listed property funds accessing capital at more attractive rates