Marriott to list retail property fund

Posted On Wednesday, 03 October 2001 02:00 Published by eProp Commercial Property News
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MARRIOTT Property Services is listing SA Retail Properties, the 19th property loan stock company on the JSE Securities Exchange SA, on Friday. The fund will be a focused fund a departure from the trend of diversified portfolios in the local listed property sector.

JSEObservers believe that the listed property sector, worth about R11bn in market capitalisation, is too small and not suited for focused funds.
In such a small market, investors prefer diversified funds, which spread risk across sectors making up for the lack of critical mass.
Focused funds are mostly found in advanced and bigger markets like the Australian listed property investment market.

The Australian market has gone through consolidation and now comprises 30 listed funds with a market capitalisation of about A35bn. The average capitalisation is A1,2bn a fund.

SA Retail Properties, will have a portfolio with market capitalisation of more than R800m at listing.

Fund manager Peter Sparks said the fund was aiming to grow to more than R1bn within six months of listing and to R2bn in 18 months.

He said the fund aimed at acquiring growing income streams from neighbourhood convenience shopping centres throughout SA.

Sparks said SA Retail would have the ability to generate future longterm income and capital growth, given that a large proportion of the income stream is derived from quality national tenants and was underpinned by long-term leases.

The portfolio consists of 19 properties with 290000m² of gross lettable area and about 700 shops. The portfolio vacancy factor is less than 5% of the lettable space.

SA Retail acquired properties from four vendors. The deals included the R304m securitisation deal concluded with Gensec where 10 shopping centres were acquired.

Last modified on Thursday, 24 April 2014 10:35

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