It seems that Eastern European property play, Nepi Rockcastle, which last week declared impressive growth of 17% in its euro-based dividend payouts for 2017, has been unfairly punished by the market because of its association with the Resilient group. A general skittishness among JSE investors following the collapse of Steinhoff’s share price has also not helped. Nepi Rockcastle’s stock has slumped around 42% in the year to date, which has wiped nearly R53bn off its market cap. That’s a sharp turnaround from two months ago, when Nepi Rockcastle was still one of the most popular rand hedge stocks on the JSE. Other companies in the Resilient stable — Resilient Reit, Fortress Reit and Greenbay Properties — have shed more than 50% in the year to date following what initially appeared to be an orchestrated short selling campaign by hedge funds. Market jitters were further fuelled by three reports that questioned the group’s cross-holdings, BEE structures and the large premium to net asse...

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