| Thu 8 Nov 2007, 17:26 | | SAC - SA Corporate Real Estate Fund - Listed real |
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SAC
SAC
SAC - SA Corporate Real Estate Fund - Listed real estate sector likely to draw
more foreign investors
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 in terms of the Collective
Investment Schemes Control Act, No. 45 of 2002 and managed by SA Corporate Real
Estate Fund Managers Limited
(formerly Marriott Property Fund Managers Limited)
(Registration number 1994/009895/06)
("SA Corporate")
LISTED REAL ESTATE SECTOR LIKELY TO DRAW MORE FOREIGN INVESTORS
The South African listed real estate sector is likely to see foreign investment
increase from the current low 3%, says Craig Ewin, CEO of SA Corporate Real
Estate Fund, the country`s third largest listed real estate fund.
"Keen interest was shown in South Africa and the listed real estate sector on a
recent road show to London and New York," he says.
A team from SA Corporate, which is managed by Old Mutual Investment Group
Property Investments, had 25 one-on-one sessions in the two cities with
potential investors, mainly larger asset managers and some hedge funds, as part
of the Macquarie International Real Estate Conference.
The conference drew representatives from real estate companies around the world,
including two other South African companies, Growthpoint Properties Ltd and Apex
Hi Properties Ltd.
"Interest was particularly keen in the United States where there is significant
domestic money looking for offshore investment opportunities," he says.
"Foreign investors are likely to pursue funds of size and with adequate
tradability. However, expectations on timing of meaningful investment need to
be realistic to allow investors to complete detailed analysis on South Africa,
the sector, the funds and to get to know management."
Ewin says SA Corporate which has a market capitalisation of more than $1 billion
and good levels of tradability, has less than 1,5% of its units held by foreign
investors.
He says the likely inclusion of South African listed real estate in the EPRA
NAREIT index was seen as positive by potential investors.
"The potential investors, particularly US based investors, were less sensitive
to income yields and more driven by potential capital upside in a stock.
Areas of concern to them were the relationship between long bond and listed real
estate yields. This inevitably led to discussions around the impact that
interest rate increases were having on the economy, and the effect on demand for
space by tenants.
The existence of differing legal structures in South Africa, being property unit
trusts and property loan stock companies, was seen as confusing. It was
generally accepted that property unit trusts are recognised as REITs while
property loan stock companies have REIT-like attributes.
However, once finalised, the common structure currently being developed in South
Africa will clear any confusion and be beneficial for promoting and marketing SA
listed funds."
Ends
Date: 08/11/2007 17:26:22 Produced by the JSE SENS Department.
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