Saffas down under
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.