What does the future hold for PUTs?

SA Corporate Real Estate, formerly Martprop Property Fund, said yesterday it increases its distributions for the five-months to 18% to 12c to December

The market can expect to see even more consolidation in the South African listed property sector this year, with bigger players acquiring smaller companies and friendly mergers between others.

Leading listed retail property fund Hyprop Investments is set to dispose of its 46% stake in SA Retail Properties (“SA Retail”) to the Public Investment Corporation (“PIC”) for R1,135 billion, electing to exit the fellow property fund in a single cash transaction at a premium to the original acquisition cost.  Hyprop initially acquired its stake in SA Retail at an average price of R9,43 a unit and will realise a surplus from the sale of over R100 million.

SA Corporate Real Estate Fund (formerly Martprop) has announced it is to make an offer to acquire all the linked units in SA Retail Properties Limited, paving the way for a R5 billion fund in a major move towards consolidation in the listed property sector.

Martprop Property Fund commenced trading on the JSE under the new name of SA Corporate Real Estate Fund from Monday, December 11.  The JSE share code will be SAC and the abbreviated name SA Corp.

Listed property unit trust Martprop Property Fund said yesterday it had acquired a Johannesburg value retail centre for R104m at an initial yield of 9,1%.

Martprop, soon to be renamed SA Corporate Real Estate Fund, has bought the Forest Road Design and Décor Centre in Pineslopes, Fourways for R104 million at an initial yield of 9,1%.