The takeover of hotel-focused property fund Hospitality by Southern Sun Hotels has been approved by SA’s competition authorities‚ with conditions.
Consolidation in the listed property sector is being stalled by volatile markets, with investors reluctant to sell their stock at existing prices.
Things at the country’s largest REIT by gross assets are not looking up. Growthpoint ended 2015 on a soft note after lopping off a fortune in investors’ funds. Figures from Catalyst Fund Managers are dispiriting from an investor’s angle.
Until recently, Growthpoint Properties and Redefine Properties were the largest listed South African real estate groups, leaving institutional investors with limited choice.
SA investors may get their fingers burnt as they shift their money to offshore property stocks in a bid to counter the effects of a depreciating the rand.
Two minority shareholders urge Hospitality Property Fund to sweeten the share swap deal that forms part of its turnaround strategy, saying its failure to do so could jeopardise the company’s future.
Investors looking for exposure to UK real estate have two more options to choose from after the listing of Redefine International spin-off International Hotel Group and mall owner Capital & Regional.
Most property funds that have listed in the past two to three years have matched or outperformed investors’ expectations.
Redefine International, the London and JSE-listed diversified property fund, acquires a R10bn property portfolio in the UK as it aggressively builds up its asset base.

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