Diversified property group Arrowhead Properties has ambitions to make sizable acquisitions in 2017. The group has been a successful consolidator on the JSE for a number of years, but found it difficult to make plays for smaller funds in 2016. It has grown to a market capitalisation of about R8.8bn. However, listed property companies, especially illiquid ones with market capitalisation of between R1bn and R5bn, could be in Arrowhead’s sights. Targets could be Safari Investments — a Pretoria-based owner of shopping centres in lower-income areas — and diversified property group Dipula Income Fund. Having listed in 2011 with R1.4bn worth of properties, Arrowhead now has an investment portfolio valued at R11.5bn, made up of R1.5bn in other real estate investment trusts and R10bn in property. In 2016, it struggled to make sizable acquisitions or take over other funds. In July, Arrowhead expressed an interest in taking over Emira Property Fund. However, Emira rejected the offer of 1.67 sha...
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