Trematon reports subdued activity in Western Cape property market
The investment company expects the property market to show subdued returns over the next 12 to 18 months
Trematon Investments, which is focused on the property and leisure markets in the Western Cape, expects the province’s real estate market to be subdued for as much as 18 months, as a number of new apartment buildings come on stream in the region. The group, which also owns education provider Generation Education, reported on Monday that growth in rental income was limited, and it would be cautious about making new acquisitions. It said after some years of strong rental growth, the market was becoming far less favourable. “It is management’s belief that some distress in this market is likely in the next 12 to 18 months,” it said. Trematon’s operations are not limited to a specific commercial area but have become strongly focused on property-related investments in the past few years, especially in the Western Cape.
The group reported on Monday that intrinsic net asset value per share (NAV) rose 8% to R4.82 in the six months to end-February, representing a 38% discount to...
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