Redefine surged more than 6%, while Rebosis (+4%) and Resilient (+3%) also staged significant rallies last week.
Redefine is currently battling Growth point for control of Fountain head's property portfolio. The eventual outcome is likely to be complicated by the fact that Fountain head is a collective investment scheme in property with an external management company (owned by Redefine) that is under the jurisdiction of the Financial Services Board.
During the week, Rebosis announced the resignation of Mike Rodel as a director and chief operating officer of the company. At the same time, the company announced a number of new appointments to strengthen the asset management team, including the appointment of Gary Fourie as the new chief investment officer.
The weakness seen in the sector since the end of August 2012, together with an increase in the income base, has pushed the average forward yield above 7% again. In the current low interest rate environment, this is an extremely attractive initial yield.
With distribution growth of between 6% and 9% per annum over the next three to five years, the listed property sector should be able to deliver inflation-beating returns.
About Grindrod Asset Management
Grindrod Asset Management forms part of the wider Grindrod Financial Services business. It provides a suite of unit trust and other investment products that are focussed on particular needs and outcome requirements of both individual and corporate investors.
