Real Estate News - Specialised property funds on the horizon

WITH the phenomenal growth experienced in the listed property sector over the past six years, there is likely to be diversification, with new types of property funds coming on to the market.

Listed property loan stock company Pangbourne, which has an industrial property focus, says its strategy is to create a specially focused office property fund either through a new listing or an existing listing.

“We see office properties as being on the up and earlier this year we decided on creating an office fund,” says Pangbourne CEO Craig Hutchison.

He says Pangbourne will act as a facilitator for creating specialised funds to give investors more choice.

He says he expects new types of property funds in the coming years. “One of the funds could be a hospital or medical property fund,” he says.

Pangbourne executive director Rob Wesselo says that Netcare and Afrox Life own hospitals worth more than R5bn.

“They may in the future decide to sell and lease (them) back, provided the fund managers understand managing those types of properties.”

 

Article by: Nick Wilson - www.businessday.co.za