INVESTMENT
Why caution still rules the listed property industry
Investors in the listed property sector are likely to remain cautious for the rest of 2018 and not many companies are expected to list in the sector. There were few new listings in 2017 and 2018 is not promising many changes until new consumer and business confidence feeds into the economy. The South African listed property sector also suffered a shock at the beginning of the year. Rumours that Resilient Reit and its associated companies were subjects of a report by short seller Viceroy sent the group’s share prices into free fall. Later various hedge fund and investment managers said the Resilient group of companies was overvalued. Directors were accused of propping up share prices. There was criticism of how Resilient accounted for its broad based black economic empowerment trust. The group then held a review which it sanctioned and despite being found not guilty of any wrongdoing, share-price pressure has persisted. The group of companies has faced consistent share price downward...
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