Growthpoint Properties, South Africa's biggest publicly traded real-estate company, said it has started talks that may affect its share price. It gave no details in a statement to South Africa's stock exchange yesterday.
Shares in Johannesburg-based Growthpoint rose 7c, or 0,4%, to a record closing price of R16,55. The stock has gained 30% over the past six months for a market value of R16,2bn.
"There is a lot of consolidation in the industry at the moment," Heather Smith, a property analyst for Sasfin Holdings's securities unit, said by telephone from East London.
"Growthpoint is probably a predator because of its size."
South African property companies are merging or buying real estate portfolios to lure foreign investors as the industry prepares to convert to real estate investment trusts, known as REITs, Smith said. Larger property portfolios offer better diversification as they typically own properties in several parts of the country.
Pangbourne Properties on May 17 said it's in talks that may affect its shares, renewing a statement it issued on February 22 and April 4, without giving details. On May 7, SA
Corporate Real Estate Fund Managers won the support of almost all of SA Retail Properties's shareholders for its R3,44bn takeover bid, creating an R8bn fund.
Acucap Properties on May 3 offered to buy the 65% of Atlas Properties it doesn't already own for R812m to gain properties in Cape Town. The same day, Standard Bank Group agreed to buy the shares it doesn't already own in Allan Gray Property Trust Management Ltd. for an undisclosed amount.
