Listed property firms in SA may pick up UK bargains after Brexit
THE Brexit fallout may create more opportunities for consolidation in the listed property sector, as smaller companies with large exposures to the UK market come under rising pressure. It could help South African-based companies, who have been on the prowl for overseas portfolios, to acquire smaller property funds at competitive prices."Any fund which is trading at a low price and is not enormous, is a takeover target," Evan Robins, listed property manager of Old Mutual Investment Group’s MacroSolutions boutique, said on Monday.Given the country’s slow growth environment and a lack of available assets for companies to buy domestically, many South African real estate investment trusts (Reits) have been on the hunt for assets abroad.Funding costs have been relatively lower in Europe than in SA, which is in a rising interest rate cycle.One company that could be a strong takeover target is Texton Property Fund. The company’s share price has fallen nearly 25% so far in 2016. Texton’s por...
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