Kagiso, NIB jump into dry property sector.

Posted On Thursday, 28 November 2002 10:01 Published by eProp Commercial Property News
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NEDCOR Investment Bank (NIB) and Kagiso Property Holdings have put together a R636m property fund called the Resilient Property Income Fund to be listed on the JSE Securities Exchange SA (JSE) next Friday.

 

NedcorThe move may signal the end of a listings drought in the JSE's property sector since interest rates began rising early this year.

The sector saw its last listing when iFour debuted in June. The rise in interest rates saw many property listing plans frozen for fear of taking a capital knock in the light of increased listed property yields.

Resilient will list with an issue price of 500c a linked unit, with a forecast yield of 16%. A total of 72,1-million linked units will float on the JSE.

Resilient's portfolio is biased towards the retail and industrial sector.

A limited exposure to the office sector has been consciously created in light of pressure facing the office property market.

The property fund also has a bias towards less popular areas, such as major retail centres in areas like Rustenburg, Secunda, Klerksdorp and Polokwane.

'These areas have not experienced the over- development seen in some metropolitan areas and offer greater stability and lower risk,' Resilient's management says.

Last modified on Monday, 28 April 2014 09:29

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