REIT Disposals Open a Window for Private Buyers

Listed property had a remarkable 2025, with SA REITs up about 46 percent year to date and leading developed markets, per Business Day. The more useful story for direct buyers is what the funds are doing with their balance sheets.

The deleveraging is creating sellers

Sector loan-to-value ratios have fallen to roughly 7 percent, down from a pandemic peak near 44 percent. That came from a mix of recovering values and steady asset disposals. Growthpoint and others have been recycling non-core assets, locally and offshore, to fund the core and cut debt.

Deal flow tells you where the stock is. Per JLL, office recorded the highest share of activity at about 30 percent, much of it business-rescue disposals from the insolvent Rebosis stable, while retail made up about 18 percent on fewer but larger regional mall deals.

What it means for investors

When the listed sector re-rates faster than the direct market, a pricing gap opens. REITs prioritising core assets become motivated sellers of the rest, and private buyers who can move quickly can acquire decent property at sensible entry yields.

Distressed and business-rescue stock, like the Rebosis assets, is worth screening, but it needs careful due diligence on tenancy, arrears and condition. The window is real. It is not a free lunch.