Catalyst Fund Managers’ recent report on the listed property sector provides for some interesting perspectives, including how a particular growth strategy through potential hostile take-over bid, could shape up

SA property funds looking to raise capital are increasingly turning to capital markets rather than the traditional method of borrowing from banks or even securitisation.

The PLSA reports that for the last 12 months to the end of February 2012, SA Listed Property recorded the highest total return of any asset class at 21.75%

Two landmark buildings in the CBD, previously owned by Vukile LTD, were snapped up by a 'anonymous' private investor for R67.6 million on auction

The South African listed property sector is growing in leaps and bounds, having increased its market capitalisation over the past 12 months from R122bn, with 18 counters, to R158bn, with 29 counters, as at the end of last month.

The JSE’s R146bn listed property sector has posted another solid performance over the past 12 months, making more money for investors than general equities, cash or bonds.

Acccording to the Property Loan Stock Association of SA (PLSA), investors in property funds over the past three to five years picked winners

Listed property was a beneficiary of August’s more benign interest rate expectations, with a 2.8% total return

Listed property comfortably continues to outpace inflation and the JSE, but one risk factor lies in rising bond yields.

Listed property may well be beating general equities in the total return stakes for the year to date, but the August reporting season reveals a widening performance gap among the JSE’s 20-odd property counters.