Optimism despite a slow start for Echo Polska Properties
The JSE’s latest rand-hedge contender offers a cheaper entry into Eastern Europe than some of its peers
The timing of Echo Polska Properties’ (EPP) listing in mid-September last year was unfortunate. The JSE debut of the purely Polish property play — the vehicle through which sector heavyweight Redefine Properties has entered Poland — followed a strong rebound in the rand and came after Britain’s decision to exit the EU. It also coincided with a new-listings fatigue that seems to have set in among fund managers due to the sheer number of new JSE real estate counters vying for investors’ capital in 2015/2016. And the company came under further pressure after the unbundling of its shares by the recently delisted Pivotal Fund, which was taken over by Redefine earlier this year. As a result, EPP’s share price has tumbled nearly 24% in the six months since listing. However, analysts believe the company’s investment case remains compelling. Metope Investment Managers CEO Liliane Barnard says if one is of the view that the rand won’t strengthen much further from current levels, EPP is attrac...
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