Stir in some property yield
In recent years industrial counters such as Tongaat Hulett and AECI have unlocked significant value for shareholders through developing noncore real estate.
Perhaps property-inclined investors should then pay particular attention to sugar-laced agri-business Crookes Brothers, which appears to be on the verge of some groundbreaking development initiatives.
The company’s latest annual report notes that approval has finally been granted for the development of the Renishaw property for commercial, industrial and residential purposes. Of the total area of some 1,800 hectares, 1,400 ha has been approved for rezoning, but only 350 ha is realistically suitable for development as the balance comprises wetlands, coastal forests or areas too steep for development.
Nevertheless Crookes reckons the first major project will be tackled in the 2017 financial year: the development of the Renishaw Hills lifestyle village (500 units over a minimum five-year period).
Crookes is one of those overlooked stocks where the market seems to short-change fair value. The property push may well bring out a stronger flavour for those punters searching for growth-inclined yield sweeteners.