It is unlikely that the JSE’s real estate sector will support the listing of large private portfolios unless these offer investors something new or include property types that are in vogue — such as distribution centres and rural retail, which offer growth in a stagnant economy. There were market rumours that telecommunications group Telkom and some large pension money holders such as Old Mutual and Pareto may come to market in 2018, but analysts say they may be better placed to pursue large listings when fundamentals have improved for listed property. The sector is trading at a large discount to net asset value and has been highly volatile so far in 2018.

A weakening rand has also prompted some investors to put more of their money into offshore property groups. "Activity levels are at multi-year lows. We’ve seen a lack of transactions by listed funds and few capital raises in 2018 so far. It would be difficult for a fund to list in this market right now while the sector overa...

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