Absa, Marriott link up in listing venture.

Posted On Wednesday, 30 July 2003 02:00 Published by eProp Commercial Property News
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ABSA Commercial Property Finance confirmed yesterday it would be listing a property fund in partnership with Marriott Property Services this year, while Old Mutual Properties is considering the option of listing a new fund.

 

Warren SchultzeThese are strong indicators of faith in the listed property sector considering that RMB Properties announced last week that it aimed to list a large property unit trust by the end of September.

 RMB Properties had initially been interested in listing a fund by the end of August this year, but chief operating officer Warren Schultze said there would be a month's delay as market conditions had indicated there would be opportunities to increase the size of the fund.

 He discounted the possibility of listing a second fund in the short term.

 Schultze said last month that market talk indicated up to five new listings were in the offing in the next six months.

 He said at the time that yields in the listed property sector had come down, making it more attractive for the transfer of directly held properties into listed funds.

 Geoff Cannings, general manager of Absa Commercial Property Finance, said yesterday its new listing would take place in the fourth quarter of this year.

 The fund would have a total value of R900m.

 "Absa has a lot of confidence in the listed sector. We still believe there is a further upside in the sector," said Cannings.

 Old Mutual Properties MD Ian Watt said yesterday the company was still considering the option of listing a separate fund. "We're not planning on listing Old Mutual's properties.

 "That's not part of the agenda," said Watt.

 "Old Mutual is one of our clients. We want to grow Old Mutual Properties in different directions. It's a matter of looking at what products Old Mutual Properties can grow to attract investors."

 Watt said Old Mutual Properties were monitoring trends overseas.

 "The listed property sector in the UK, US and Australia has been a very big growth area over the last three or four years. Some of the overseas funds are looking at increasing their direct property exposure."

 Watt said that Old Mutual Properties was looking at investor interest, the availability of stocks and the ability to put a fund of a reasonable size together.

 "We are not looking at a fund driven by the properties owned by Old Mutual.

 "We would be looking to be buying other properties with the intention of listing and attracting investors with properties," he said.

 Watt said Old Mutual Properties' approach differed because "other parties" were looking at listing direct property "they already own".

 Watt said it would come as no surprise if there were a number of new listings in the near future.

 "An important issue is how attractive are new listings as opposed to what already exists." Watt said Old Mutual Properties did not have any other funds in the listed property sector.

 Property analysts have speculated that some of the small listed property companies will merge over the coming months to compete with larger funds.

       

Last modified on Monday, 12 May 2014 10:02

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