Do the math
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.