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Gosh am I glad I got out of the Redifine international property rubbish - what a one way ticket ..and gladder still that I have bought into that SA Corp property stuff - enjoyed the BUS DAY report on these lads -
today = good story and it loks even better for the future. So true youhave to be careful which property stocks you buy this is not a growth story where the tide of low interest rates causes every man and his dog house to rise.
Has been disappointing, but I bought some this week. Every dog has its day, and I like to buy at point of maximum pessimism. Who knows, maybe the rand tanks, but I wanted some rand hedges and bought RPL, ALP and SRE for some diversification, and much better prices than a year ago. I like that on some you can re-invest dividends, will leave them alone and let them grow now.
Every time this discussion pops up there is an argument around quality - with some folk saying /or implying that quality is not an issue - well if that were true then the old truism of position positio position
for one would not apply. But we all know the converse remains true. So dear old RPL focusses on payouts and then wonders why people don't want to invest into the company because it has too many B grade properties. And while I like German property there is a thing called B grade there too. So the SAC story is a good one - and I think it still has legs. I don't want to buy a S E European shopping Mall - with or without the goats... So Northern EUROPEAN and A grade is where i want to be when it comes to property -but even now the ECB is walking to the door marked "No more monetary easing " through which it will walk and we all know what the next door will be.
It was the best of parties while it lasted!
Redefine properties are hardly in the slums.
AAA grade properties on 5% yield and ravaged by inflation. Unsaleable (semi-) white elephant shopping centres and mega office blocks relying on a single massive tenant - are not always such a good thing. DITOO - high execution risk premium developers like CAPCO.
I much prefer the risk reward on the second tier players - especially since they compensate me with an 8%+ yield in pounds.
That said, however, I do NOT recommend plumbing the depths for the micro players with a couple of suburban properties in their "portfoliios."
Good pick. I also Bought into SA Corp about 6 months ago. I like their property portfolio and with their recent results, they seem quite efficient as their ROE is somewhere aound 20%. Quite impressive thus far