SA investors are slowly but surely starting to climb back into UK-focused property stocks, which have been out of favour since Britain announced its exit from the EU in mid-2016. Analysts agree that it is becoming hard to ignore the value proposition created by the stronger rand and the substantial discounts to NAV at which a number of the JSE’s 12-odd real estate counters, with 100% or partial UK exposure, are trading. For instance, former market darlings Covent Garden owner Capital & Counties Properties (Capco) and retail play Intu Properties are both trading around 52% below their 2016 share price highs. That places the two companies at a discount to NAV of around 15% and 35% respectively. Hammerson, which listed on the JSE in September 2016 and is the sector’s largest UK-focused property offering, offers a 36% discount to NAV. Hammerson and Intu plan to merge later this year, which will create the UK’s largest shopping centre fund. With a combined market cap of around R115bn, th...

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