Listed commercial property fully priced

Posted On Thursday, 23 August 2007 02:00 Published by eProp Commercial Property News
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At the moment the sector is doing extremely well from a fundamental on the ground nuts and bolts kind of view

Evan Jankelowitz Where's the best spot in the SA listed property sector? Classic Business Day talks to Evan Jankelowitz from Stanlib

LINDSAY WILLIAMS: I dozed off again! The markets are pretty boring - the Dow Jones is more or less unchanged. The property market is quite interesting. Hlelo Giyose has brought Evan Jankelowitz from Stanlib in to talk about the property market.

Evan, thanks for coming in. We spoke to Hyprop just now - the property market itself, where would you be now if you had to invest in listed property on the JSE? A retail orientated fund - or would you go elsewhere?

EVAN JANKELOWITZ: What's always said is there's a difference between a good stock and a good company. At the moment the sector is doing extremely well from a fundamental on the ground nuts and bolts kind of view, however the sector really is quite fully priced.

Looking at certain things from a Stanlib point of view we're very focussed towards the industrial sector - we are looking at big stakes in the likes of Capital Property Fund and Pangbourne. You must look at the retail sector as generally your bread and butter - so time after time it's a perennial producer.

You can re-invent it, you've got average escalations around 8% so that's always good in the long term bet. However, on the ground you're looking at industrial and office markets - where historically for example in the Tech boom you saw an oversupply of office space, all of a sudden you've seen a huge run in GDP in the economy and you've seen a lot of extra space being saturated.

That's where you see the big Alpha generators. Again, they're more cyclical, however that's really where you get to Alpha at the moment - industrial as well as office space.

LINDSAY WILLIAMS: Can we actually expose ourselves to office and industrial space through a particular fund? It seems to me that everyone I speak to is heavily geared towards the retail market?

EVAN JANKELOWITZ: You are right. I think the general view in the South African context is they are either heavy in retail or they what they call "diversifieds".

However, as I said before the likes of Capital and Pangbourne are where you do probably get your highest exposure to likes of industrial. You've got to be very specific as to where you focus your aim.

However, again there's nothing wrong with the retails - you've seen Hyprop with 18.2% growth. You must take that in context - the rest of the sector is about 13% so amazing results - but you can really exercise your view if you need to if you look hard enough.

LINDSAY WILLIAMS: A super set of results.  

Last modified on Wednesday, 23 April 2014 15:46

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