Arrowhead Properties: The perils of perplexing investors
Real estate fund needs to get back to basics after confusing everyone with its expansion strategy
Arrowhead Properties (https://www.sharenet.co.za/v3/quickshare.php?scode=AHB) has become the real estate fund that flew too close to the sun and now needs to get back to basics following its merger with Gemgrow Properties.
Arrowhead listed eight years ago with R1.4bn in assets under CEO Gerald Leissner, the respected veteran who managed Anglo American’s property portfolio. But the company has become too complicated too quickly.
It was designed to grow through acquisitions in a bull market. While this worked initially, with the company buying varied portfolios, as well as Vividend Property Fund in 2014, it seems to have hit a wall in the past two years...