Stir in some prop­erty yield

Financial Mail - Investors Monthly - - Opening Bell -

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.

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