Saffas down un­der

Finweek English Edition - - INVESTMENT - MARC ASH­TON

AS OUR cover story shows, new prop­erty list­ings have been all the rage in 2013. Si­mon Brown thinks the sec­tor is pos­si­bly en­ter­ing bub­ble ter­ri­tory and while I agree in some cases, listed prop­erty has in ef­fect re­turned 0% in cap­i­tal growth this year so maybe the air has been let out of the bal­loon a bit.

One of the more in­ter­est­ing list­ings com­ing to the JSE is the In­vestec Aus­tralia Prop­erty Fund (IAPF), which started trad­ing at the end of Oc­to­ber.

While I like the idea of tac­ti­cal ex­po­sure to Aus­tralia specif­i­cally, the In­vestec Prop­erty Fund (IPF), which is cur­rently listed on the JSE, has bought 18% of IAPF. This gives you ac­cess to the South African as­sets – many of which are in good growth ar­eas – and you also get some off­shore ex­po­sure at the same time.

IPF is trad­ing on a price-to-earn­ings mul­ti­ple (P/E) of around 12.5 and of­fers a div­i­dend yield of around 6%. Di­rec­tors have con­sis­tently voted with their own wal­lets and bought units in the fund and a vote of con­fi­dence like this is great to see.

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