Listed property swimming in funds
More than $3.6 billion has been injected into the listed property trust sector since mid-2002 via capital raisings and mergers, with $1.65 billion alone raised in the past six months. The ASX 200 Property Trust index has been driven to a record high closing on June 20 at 1592.6. Over half the cash pushed through the sector has been due to mergers and acquisitions however.
Fund managers have been attracted to LPTs at the expense of other asset classes. Property investment normally accounts for 7 per cent of funds invested in by managers; it now accounts for nearly 10 per cent. Analysts expect the trend to continue in the medium term.