Do the math

Finweek English Edition - - INVESTMENT - MARC ASH­TON

THE JSE-LISTED con­struc­tion sec­tor has had very lit­tle to cheer about over the last few years. Post­poned projects, com­pe­ti­tion is­sues and ra­zor-thin mar­gins have all com­bined to pun­ish share­hold­ers.

Con­sider, though, that it is cur­rently car­ry­ing 148.5c/share of a spe­cial div­i­dend fol­low­ing the sale of its stake in en­gi­neer­ing group TWP Hold­ings. The last day to trade cum div­i­dend is 13 June 2013, so this should act as an un­der­pin to the share price.

One of the themes that we at Fin­week have pushed is the low-in­come hous­ing sec­tor and this is one of the sec­tors that Basil Read has be­gun to tar­get. The group is in­volved in the R850m Mal­i­bongwe Ridge project, which is an ex­ten­sion of the Cosmo City devel­op­ment. It is also in­volved in the Sa­vanna City devel­op­ment in Jo­han­nes­burg, which is a 1 462ha project val­ued at R3bn in part­ner­ship with Old Mu­tual. Ac­cord­ing to Basil Read, Sa­vanna City is po­ten­tially the largest pri­vate af­ford­able ur­ban life­style devel­op­ment of its kind in SA, sur­pass­ing Cosmo City. One for the re­bound.

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