Real Estate Investor Magazine South Africa June 2015

AFRICA International Property Funds Global property exposure offers better prospects BY MIKE BROWN F ollowing on the history of over 20% per annum returns in local listed property shares and indices on the Johannesburg Stock Exchange ( JSE) over the past five years and more, many analysts are now suggesting that global property exposure rather than local property companies, may offer better prospects. Taking funds offshore to invest in such global property is, however, a very time consuming, costly and frustrating exercise, tied up by plenty of red tape and layers of fees. “Investing in such companies gives access to global income streams and also provides a Rand hedge.” Another alternative is to purchase property companies on the JSE that give access to global commercial property portfolios. Capital & Countries Property PLC, which has a portfolio of central London properties and Intu Properties PLC, one of the United Kingdom’s largest listed property companies, comes to mind. Smaller global property companies with a JSE listing include New Europe Property Inves

Real Estate Investor Magazine South Africa June 2015 | Page 60