Corovest plans property unit trust

Posted On Thursday, 17 July 2008 02:00 Published by eProp Commercial Property News
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Corovest Property Fund Managers hopes to launch a unit trust investing in the JSE’s real estate sector by end of this year.

Mariette WarnerCorovest Property Fund Managers, which is part of Coronation Investments and Trading, hopes to launch a unit trust investing in the JSE’s real estate sector by end of this year.

Corovest Property Fund Managers MD Mariette Warner said yesterday the launch of the Corovest SA Listed Property Fund would come at a good time because the “major decline in listed property prices” had created buying opportunities.

Since November, when prices peaked, the listed property sector has shed more than 30% in value because of rising interest rates and inflation.

Warner said there were signs “there are investors who see value at these levels”.

She said there had been a recent rally in the sector with the index gaining 7,8%.

However, she said this was on a relatively small value of trade.

“A continuation of this rally accompanied by increasing value of trade will indicate broad-based improvement of investor sentiment.”

She said Corovest was waiting for approval from the Financial Services Board and was hoping to launch the fund in the fourth quarter of this year.

Warner, who will manage the fund, said the rationale behind it was to generate fee income. She said its size would depend on investor demand and growth in the sector.

Corovest also intended to develop a segregated mandate business in the retirement fund and private client industry.

Last modified on Monday, 21 April 2014 13:47

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