High-quality property is ripe for the PIC-king
SA’s largest investor, the Public Investment Corporation (PIC), has an opportunity to buy high-quality property assets, which barely ever go up for sale, on the relative cheap.
The group can build a large direct property portfolio with a look to listing a fund in a few years’ time, long after Covid-19 and when the economy has achieved strong momentum again. Many of the listed real-estate investment trusts (Reits) are trying to sell assets currently to bring down their loan-to-value (LTV) ratios. LTVs measure a property stock’s debt relative to the size of its assets...