Catalyst SA Property Fund analysis
Along with Sesfikile, Catalyst is a leading listed property specialist manager
Along with Sesfikile, Catalyst is a leading listed property specialist manager. Its SA property fund aims to achieve a 13%-15% return over an annual cycle. Senior portfolio manager Paul Duncan says that the business’s research is focused on two areas. These are trends affecting capital markets concerning real estate pricing, yields and funding costs, as well as trends affecting real estate markets concerning vacancy forecasts, changes in market rentals, contractual rental escalation rates and operating cost increases. Perhaps even more important is the in-depth company analysis, looking at the quality of the real estate at each listed company, its risk-return profile, the capital structure and the quality of management.
The fund had a bias towards international shares in 2015 and 2016, which has certainly been changed. In its top 10 only Sirius Real Estate and Investec Australia would be considered fully international, though lately Resilient, and more recently Redefine and Te...
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