Exposure to offshore property has become a popular theme for local investors looking to diversify outside SA. Property’s main appeal lies in comparatively lower risk and regular income. And, for the most part, investors have been rewarded.At least, that was the case until Resilient Reit became the fly in the ointment that caused SA-listed real-estate investment trusts (Reits) to shrink more than 17% this year to end-July, against a 1.9% contraction in the JSE all share index. The group has been accused of manipulating its value through convoluted cross-shareholdings, and its share price plunge has hurt the industry.It has also hurt investors who piled into locally listed Reits for their rand-hedge qualities: more than 50% of these Reits have exposure to global markets.Resilient’s troubles and the sharp decline in the index are not a reflection of the state of the industry, nor of the opportunity presented by these externally focused funds. Historically, SA listed property has been t...

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