Real estate panic on fears about Viceroy

There was widespread panic selling across the listed property sector on Thursday on speculation that the Resilient group of companies could be the target of a corporate governance report that US firm Viceroy Research said it would release in 2018. Commentators suspect hedge funds are selling shares in companies in the Resilient property stable in anticipation of a report that may highlight alleged illegalities or irregularities within the group. Viceroy Research, the US firm that became prominent after releasing a report about embattled Steinhoff International’s accounts in December, said it had another report on the way on an unnamed South African firm. Investors across the JSE are trying to work out who the dubious company could be. But Garreth Elston of Golden Section Capital said that while it was common in large listed real-estate markets such as the US and Canada for research houses and fund managers to release critical corporate governance reports and short-sell property stoc...

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