Merged stock of Rockcastle and Nepi flat
The JSE’s largest property share fails to attract new funds
New Europe Property Investments (Nepi) and Rockcastle Global Real Estate have merged to become the largest property stock on the JSE with a market capitalisation of R95bn, but new investors have not yet embraced the stock. The combined NepiRockcastle has not yet attracted the array of investors, including index trackers, that it expected. Its share price has been flat since the merger, having risen 0.42% to R177.50 since July 12. The two companies have grown tremendously since the listing of Nepi in July 2009 and Rockcastle in July 2012 and much of the money may have already been made for their investors. The companies had shown strong dividend growth and attractive capital returns and provided exposure to a diverse global property offering, said Ahmed Motara, a listed property analyst at Stanlib. The merger was announced in 2016. Nepi has provided exposure to central and eastern Europe. In 2016 sites in Romania generated 73% of gross rentals, Slovakia 13% and the balance in Croatia...
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