Wider implications of Steinhoff property spook investors
The independent property valuations announcement spreads uncertainty for property investors on the JSE
Steinhoff’s announcement that at least part of the group’s European property portfolio could be overstated by as much as 50% has added considerable uncertainty to property investors on the JSE. The sector is already reeling from the upheaval involving the Resilient group, with the hardest-hit property shares those with exposure to eastern Europe. The result of the vigorous independent valuation by CBRE of part of Steinhoff’s European property portfolio has further chilled sentiment towards property investment, which is already struggling with rising US interest rates. Shareholder activist Albie Cilliers says that up to now, independent property valuations were often wildly optimistic and based on "the highest and best use" of the property. "Coming so soon after Resilient, the latest Steinhoff development will put pressure on property companies to disclose details of valuations and who the valuer was," said Cilliers. Asset manager RECM’s head, Piet Viljoen, said it was strange that S...
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