Private investors sees value in struggling property funds
Private groups can wait for more favourable conditions to offload assets and do not have to pay dividends, once they buy out listed funds
Private groups are ready to swoop on listed property funds, which are trading at huge discounts to their net asset values after 2018 was the sector’s worst year in more than two decades.
Analysts say the first sign that these funds, which include wealth managers and private equity players, were becoming interested in the sector was when mall owner Safari Investments received an offer from unlisted ComProp earlier in the year. Private investors are also understood to be holding on to their shares in Delta Property Fund and Rebosis Property Fund, two listed companies that announced merger talks in August as they look to alternatives, such as taking the two companies private.