Indluplace Properties homing in on growth and profit
Indluplace Properties seems to be getting back on track after the bumpy ride that followed its listing
Though Indluplace Properties was off to a strong start in the first two weeks following its listing by the Arrowhead stable in mid-2015, the JSE’s first purely rental housing play hasn’t quite lived up to expectations since then. By the end of 2016, the share price was down about 10% from its post-listing high of R11.65. However, over the past three months the stock has recovered most of these losses and appears poised for further gains following a major acquisition announced earlier this month. The R475m Diluculo transaction will increase the size of Indluplace’s portfolio by 24% to nearly 7,000 rental flats. It is the first sizeable deal clinched by the company since it bought nine high-rise apartment buildings in Hillbrow and Joubert Park in the Johannesburg inner city for R420m about 18 months ago. Analysts ascribe last year’s disappointing share price performance to, among other things, growth constraints on the back of rising interest rates. Stanlib property analyst Ahmed Mota...
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