SA’s listed property sector is drowning in a sea of problems. The latest facing the R470bn sector is a loss of credibility, particularly about how listed funds value their properties.

One bank says the consensus among analysts is that the sector is about 15% overvalued, while many funds are trying to keep debt levels as measured by their loan to value (LTV) at below 40%. This suggests a fund with a LTV of 40% actually has a LTV of at least 50%. ..

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