SAC - SA Corporate - Old Mutual Property Funds Out
SAC
SAC
SAC - SA Corporate - Old Mutual Property Funds Outperform Market Benchmarks
SA Corporate Real Estate Fund
(formerly Martprop Property Fund)
(Incorporated in the Republic of South Africa)
Share Code: SAC & ISIN Code: ZAE000083614
A Collective Investment Scheme in property registered interms of the Collective
Investment Schemes Control Act, No.45 of 2002 and managed by SA Corporate Real
Estate Fund Managers Limited
("SA Corporate Fund Managers")
(formerly Marriott Property Fund Managers Limited)
(Registration number 1994/009895/06)
("SA Corporate" or "the Fund")
Press Release
OLD MUTUAL PROPERTY FUNDS OUTPERFORM MARKET BENCHMARKS
SA Corporate Real Estate Fund and SA Retail Properties Ltd which are set to
merge into a R7 billion diversified fund, both outperformed the Investment
Property Databank industry standard for 2006 with total returns for the year of
33.8% and 41.2%.
Craig Ewin, head of listed real estate at Old Mutual Investment Group: Property
Investments, which manages both funds, said that these were pleasing results and
entrenches both funds` excellent IPD performance track record.
SA Retail`s return of 41.2% follows a 32.6% return in 2005, and SA Retail has
beaten the IPD average every year since the fund was listed in 2001. SA
Corporate returned an impressive 33.8% which follows last years 34.4%.
"SA Corporate showed a high income yield of 10.2%, 100 basis points above the
IPD benchmark of 9.2% for South Africa," says Ewin. "This high income yield,
combined with the low vacancies in the portfolio, shows that the fundamentals
are strong and position SA Corporate well for future growth."
SA Corporate`s acquisition of SA Retail is well on track and this will position
SA Corporate as a R7 billion diversified fund. Ewin says the combined portfolio
will comprise 65% retail properties, 29% industrial and 6% offices. The
overweight industrial position is seen as positive, says Ewin, with IPD results
showing that the industrial sector again had top returns with 31.1%.
The IPD results showed a total return of 26.7% placing South Africa second in
world performance, marginally behind Ireland`s 27,2%. Interestingly, SA has the
highest income yield reported so far by IPD. The SA IPD includes 2 478
investments worth more than R111 billion.
"The view by property strategists that the industrial sector will again be the
best performer in 2007 is also encouraging to SA Corporate. So too is their
view that prospects for the property market remain strong, and while commercial
property returns may be slower, long term fundamentals remain positive" says
Ewin.
11 April 2007
Date: 11/04/2007 15:48:13 Produced by the JSE SENS Department.
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