Growthpoint's decision to invest in a portfolio of linked units signals the growing popularity of a hybrid property loan stock structure, but questions about the merit of this hybridity remain.

A dispute over a couple of thousand rand has resulted in the suspension of investment company Consolidated Property and Finance from the JSE Securities Exchange SA.

Survey cites oversupply, lower income

The list of property companies which have reported muted earnings growth is getting longer, indicating that the listed property sector of the JSE Securities Exchange SA is heading for trouble.

Shops for Africa, the focused retail property company that listed in the JSE property loan stock sector in July 2001, is aiming to more than treble the value of its portfolio to R1-billion.

Property loan-stock company Redefine Income Fund has been working around the clock to restore a 5050 portfolio split between directly held property and listed property securities and at the same time grow its overall portfolio.

LYONS Financial Solutions Holdings plans to retain a 10% equity interest in its corporate lease fund even after listing it separately, a structure in line with international trends and ensuring that asset managers do not milk the funds under their management with fees.

Companies are still not returning to Johannesburg’s city centre. However, many new tenants have taken up office space in recent months.

THE fast-growing property loan stock sector of the JSE Securities Exchange SA is to record another listing when Acucap Properties debuts with property assets worth R865m next week.

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.