The Competition Commission has approved of the merger of Redefine Income Fund and Spearhead Property Holdings without condition

Some idea of how healthy Greater Cape Town commercial and industrial property rentals have become can be gained from figures released recently by Ronel Judin, Asset Manager for Spearhead Properties, the loan stock company now merging with Redefine.

In excess of 58% of Spearhead's unit-holders voted in favour of a takeover offer from Redefine Income Fund at the Spearhead Special Meeting called today (Tuesday 24  October).  The motion was carried with 100% of those voting in favour of the takeover by Redefine.  

One of the advantages of REITs is their tax efficiency

Linked unit-holders of Madison Property Fund Managers Limited, the first property asset manager in South Africa to be listed on the JSE Limited, are set to benefit from the transaction which should result from Redefine Income Fund Limited’s offer to Spearhead Property Holdings Limited unit-holders to acquire 100% of the Spearhead linked units in issue.

The Property Loan Stock Association (PLSA) will be hosting its first-ever management, REITs REALITY – towards a REIT environment in South Africa – on 16th and 17th August at the Sandton Convention centre.

From being the long-standing star sector just three months ago, listed property has taken a massive knock since interest rates were raised a few weeks ago. But while listed property unit trusts have fallen sharply down the performance tables, they could now be offering much better value.

The recent downturn in the listed-property market is a temporary setback in a long-term bull market

Increased investment, smaller yields and higher property values auger well for SA economy.

South African-listed property loan stock companies should consider converting to the international real estate investment trust system, which originated in the US.