South Africa's listed property sector is set to undergo consolidation in 2014.

Residential property in an array of forms including student housing is in such high demand that investors who have not dabbled in it before‚ are chasing it.

Octodec and Premium announced they have entered into an agreement with IPS Investments and City Property Administration that will see IPS repurchase City Property’s shares in IPS for a cash consideration of R127.5 million and the repayment of City Property’s shareholders loan in IPS of R48.1 million.

South Africa’s listed property sector declined 0.3% during the week ended 25 October 2013. 

Octodec Investments delivered strong growth in distributions of 14,8% for the year representing an income yield of 8,3% with a total return of 11,7%.

Premium Properties and Octodec Investments appoint independent non-executive director 

Linked unitholders are advised that the Company's application to the JSE Limited ("JSE") for Real Estate Investment Trust ("REIT") status has been approved by the JSE.

Accordingly, Octodec will qualify as a REIT with effect from the commencement of its next financial year, being 1 September 2013.

JSE-listed sister companies Octodec Investments and Premium Properties have 76 property refurbishment projects on the go in Gauteng’s central business districts (CBDs), amid continued improvements in the province’s inner cities.

Wapnick confirms that the much-anticipated merger between Premium and Octodec is now firmly on the cards, given the JSE’s adoption of the new real estate investment trust (Reit) structure 

With limited targets up for grabs in the market, many listed property groups are taking advantage of the cheap funding environment to restructure their debts and improve the quality of their existing portfolios.