In the month to June 18, the index shed 12%, more than R20bn was wiped off the sector’s market cap and forward yields climbed from an average 6,1% to around 7%.
The repricing of the listed property sector will make it less attractive for unlisted real estate companies and developers to bring their shopping centres, offices and warehouses to the JSE. Proposed listings may well have to adjust their initial yield offering upwards to lure enough investor support.
But that has not derailed the listing plans of, among others, Tower Property Fund, which is to make its JSE debut in July. The fund, which counts the trendy, mixed-use precinct Cape Quarter in Cape Town’s Green Point and a Green Star-rated Sandton office block as two of its flagship properties, has been assembled by the Cape-based Spire Property Group.
Tower’s listing is likely to be followed in mid-September by Sovereign Properties, a government-tenanted office portfolio that has been unbundled by Redefine Properties. Then come Nic Georgiou’s Accelerate Property Fund and Atterbury Investment Holdings, this year’s biggest and most anticipated listing, probably in the fourth quarter. Several others are expected to follow.
[partners title=”Spire Property Management” col=”one-fourth” cat=”all”]