Might have pulled a smart one

Finweek English Edition - - INVESTMENT - MARC ASH­TON

FOR THE last year, Si­mon Brown and I have been say­ing we fancy a punt on low-cost hous­ing de­vel­oper RBA Hold­ings. Frankly, we grum­ble about it, es­pe­cially when you see neg­a­tive trad­ing up­dates from the group.

On 13 Septem­ber the firm told share­hold­ers in its in­terim re­sults for the six months to 30 June, that its head­line loss is ex­pected to be be­tween 2.62c and 2.72c/share com­pared to head­line earn­ings of 0.44c/share for the com­pa­ra­ble pe­riod. It cited that only three ma­jor projects (Braam­fis­cherville, South­ern Gate­way and Protea Glen) were be­ing de­vel­oped.

We had a chuckle when RBA – which bat­tled to raise R10m for an­other de­vel­op­ment – an­nounced that it was en­ter­ing into a joint ven­ture to buy a R42m tract of land in Leon­dale/ Dawn Park. How­ever, Fin­week found that the seller ini­tially had it on the mar­ket for R64m, sug­gest­ing that there is some value.

*The writer holds shares in RBA Hold­ings.

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