Paraprop back from the cold

Posted On Thursday, 11 November 2004 02:00 Published by eProp Commercial Property News
Rate this item
(0 votes)

The office portfolio of Paramount Property Fund, the Cape-based listed loan stock company, has outperformed all other office portfolios over two years.

Bruce KerswillThe fund, headed by former Norwich Life executives Rodney Squire Howe and Bruce Kerswill, has been debilitated by a deferred debenture structure that has diluted payouts to shareholders.

But the performance of the underlying portfolio indicates that fund income will increase soon. 

Property unit trust Allan Gray Property fund is SA's second-biggest listed fund with a market capitalisation of R3,4m; it is also one of the oldest.

It had the best results from its retail portfolio, after having refurbished or sold off many of its older properties. Retail makes up over 50% of all listed property funds. 

Property unit trust Marriott Property fund was the FM Investment Property Databank (IPD) top industrial fund. 

The FM IPD benchmark and index are drawn from data supplied by 70% of SA's major property funds.

And for the first time they provide a standard against which managers can measure how well their portfolios are doing. It also standardises property valuation, the only means to determine the growth in value of property portfolios. 

The FM has adopted the IPD data to encourage greater transparency among funds and provide a common benchmark for investors. 

The awards, including this year's, have been limited to listed funds.

As the table shows, their total returns in each category were higher than the returns of all the funds, including insurance and pension fund portfolios combined.

This indicates that the returns of the unlisted funds lagged the listed ones. 

Is this a sign that more transparency leads to better results for investors?

The FM thinks so and aims to have all funds taking part in the awards.  

Last modified on Wednesday, 14 May 2014 14:07

Most Popular

Strong demand boosts Balwin as it claws back three months of no construction activity due to covid lockdowns

May 18, 2021
The Huntsman 2
JSE listed Balwin Properties, a developer that cares about environmentally responsible…

Construction kicks-off at the R500-million Boardwalk Mall

May 17, 2021
Architects presective of the exterior  of the Boardwalk Mall
Flanagan & Gerard Group and Emfuleni Resorts, a subsidiary of Sun International (JSE:…

Growthpoint leverages development prowess to re-imagine La Lucia Mall as a vibrant suburban mixed-use experience

May 17, 2021
Growthpoint Properties (JSE: GRT) is applying its development expertise to unlock…

Successful degearing and continued dividend payments has allowed Investec Property Fund to continue rewarding shareholders

May 19, 2021
Andrew_Wooler_IPF (1)
Investec Property Fund, (“IPF”, or “the Fund”) today announced a resilient set of…

Residential sectional title sales again on the rise

May 27, 2021
Over the past 15 years, the sectional title market in South Africa has become entrenched…

Please publish modules in offcanvas position.