Listing fillip for Diversified

Posted On Friday, 14 October 2005 02:00 Published by
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LISTED property loan stock company Diversified Property Fund, which listed on the JSE on October 6, has been consistently trading between 12% and 16% above its listing price of R5.

Nick Wilson

Property Correspondent

LISTED property loan stock company Diversified Property Fund, which listed on the JSE on October 6, has been consistently trading between 12% and 16% above its listing price of R5.

Diversified MD David Lewis said he believed "the market was looking for yield" and that the fund had listed at an attractive yield of 10,51%.

Lewis said Diversified’s market capitalisation at listing was R442m and that it had since increased to R495m.

Lewis said the company had expected the unit price to rerate from R5 to about R5,50.

Mariette Warner, head of property funds at Stanlib Asset Management, said Diversified listed at an attractive yield and this resulted in an "immediate rerating".

"I believe it is trading at fair value relative to the listed property sector," she said.

Warner said the property fund had good industrial and retail properties, with a strong bias to national retailers.

"Their plan to develop shopping centres in under-catered areas is supported by national retailers," she said.

"Diversified management has the expertise to make this a success," said Warner.

Diversified plans to expand into other countries in Africa, where it can generate a dollar-based income.

Diversified’s focus is on smaller rural shopping centres of between 5000m² and 10000m².


Publisher: Business Day
Source: Business Day

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