FEW DEALS EXPECTED
Why analysts expected a quiet year for listed property
Analysts are expecting few new listed property takeovers and acquisitions in 2017 amid unconducive conditions. Property fund managers, who want to acquire other funds, are struggling to agree on prices with potential sellers. This is despite some investors still urging for more liquidity in the listed property sector. Instead, various transactions announced last year will be completed including the merger of Eastern European groups Rockcastle Global Real Estate and New Europe Property Investments. The two are set to become the largest real estate company on the JSE, with a market capitalisation of R79.07bn. Some transactions may also come to fruition in 2018. "We don’t see imminent consolidation in the small-cap space at this stage. It’s the same story abroad. It will happen over time because most of these funds are small and may struggle to grow given both local challenges as well as offshore challenges, which include Brexit and EU political uncertainty," said Stanlib’s head of lis...
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