2001 saw the listing of four property companies on the JSE – Shops for Africa Ltd, Arnold Property Fund Ltd, SA Retail Ltd and Fairvest Property Fund. All four were listed in the Property Loan Stock sector and collectively contributed over a R1bn to the sector’s market capitalization. The biggest contributors to overall market capitalisation in the PLS sector last year were Growthpoint’s and ApexHi’s asset acquisition, and the SA Retail listing. The period also saw the delisting of the PLS, Grayvest, and the purchase of their assets by the PUT, Grayprop.

With 27 listed vehicles in the two sectors and many of them with small market capitalisations and low tradability, we can expect consolidation of the above property funds. It is anticipated that the property sector will again dominate the number of corporate activities on the JSE in 2002.

Should there be new listings during 2002, their success will depend on the uniqueness of portfolio in respect of size, quality and yield Investment institutions may prefer the industrial equity market going forward, which is showing signs of greater growth following the September 2001 terror attack in the USA and our interest rate uncertainty going forward.

Another interesting development, which comes into effect on 24 June 2002, is the reclassification of the JSE sectors, to conform to the FTSE Global Classification System. Real Estate will become part of the Financial Economic Group, with Real Estate Holding & Development being a sub-sector to the Real Estate sector. The All Share Index will now comprise 161 tradable shares and the property companies that will form part of this ALSI are Liberty International, Grayprop, Martprop, Redefine, Metprol, Cenprop and SA Retail.