Real Estate Investor Magazine South Africa Real Estate Investor Magazine - July 2017 | Page 40

LISTED
Shifting Focus in
UK Exposure
A look at the redevelopment of the market
BY KEILLEN NDLOVU
F
or years, Intu and Capital and Counties have
been the default allocation for South African
investors looking for exposure to the UK
property markets. The two were spun out of Liberty
International. Intu focused on retail centres, whereas
Capital & Counties became the development play in
the residential space as well as holding the key and
successful asset called.
Covent Gardens.
Things have been changing over the years. We saw a
number of South African entities enter the UK market
in various forms or structures. The exposure to the
UK on the JSE now includes Redefine International,
Atlantic Leaf, Stenprop, New Frontier Properties,
Texton Property Fund, Capital and Regional, as well
as MAS.
Turning tides
Last year in September, Hammerson Plc, a UK listed
entity, listed on the JSE. It became the biggest listed
property stock on the exchange and took over the top
spot from Intu and Growthpoint Properties.
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JULY 2017 SA Real Estate Investor
By listing on the JSE, with the aim diversifying its
shareholder base, and being attracted by the strong
appetite for property from South Africans, this gave
local investors direct exposure to the stock without
the need for an offshore allowance.
Interestingly, Hammerson and Intu have the
same portfolio size of £10bn, but Hammerson’s
market capitalization is £4.7bn and Intu is £3.6bn.
Hammerson achieved superior portfolio value growth
as well as earnings growth.
Hammerson
Hammerson’s portfolio has exposure 58% to the
UK and 42% to Europe. Hammerson is invested in
13 countries in Europe, namely, Ireland, France,
Netherlands, France, Spain, Italy, Sweden, Poland,
Germany, Switzerland, Portugal, Belgium and Czech
Republic. It has a top 3 market position in all the
retail segments that it is exposed to, which include
23 shopping centres, 18 retail parks and 19 premium
outlets. Some of the flagship assets in the portfolio
include Brent Cross (London, UK), Dundrum Town
Centre (Dublin, Ireland), Bicester Village (Bicester,
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