Monday, 28 November 2016 22:36

Liberty Two Degrees unit settles for manco

Written by
Rate this item
(0 votes)

Liberty will be managed by an external management company, manco, following its listing in December.

 Amelia_Beattie_CEO_of_Liberty_Two_Degrees

Liberty Two Degrees, the real estate investment trust (Reit) vehicle created by investment giant Liberty, will be managed by an external management company (manco), following its listing in December, even though this type of structure has been criticised in the listed property sector in the past.

Mancos are paid regular fees with a concern being that the management of these structures may make acquisitions for the sake of being rewarded instead of taking the long-term interests of shareholders into account.

But it would seem that Liberty Two Degrees, which will have R10bn in assets, exposing JSE investors to portions of various iconic malls such as Sandton City and Melrose Arch for the first time, has been designed to be managed by a manco on purpose. An important reason for this is to prevent the vehicle from becoming a takeover target, early in its life, according to one analyst.

Grindrod Asset Management chief investment officer Ian Anderson said while mancos were becoming less popular in SA, Liberty Two Degrees would be managed by one as it could block suitors from making acquisitive plays for the Reit.

“An external manco is not desirable but understandable in this instance,” he said.

source: Business Day

Last modified on Monday, 28 November 2016 22:52

Most Popular

Signatura launches Cosmopolitan lifestyle on Bantry Bay/Sea Point cusp

Mar 28, 2017
Sea_PointCusp
Some of the most exclusive real estate in the country – Cape Town’s Atlantic Seaboard –…

Corobrik contributes to Inner City rejuvenation.

Mar 30, 2017
Heritage View development Brickfields Newtown Johannesburg
The quality, durability and overall affordability of Corobrik’s face brick range has seen…

Sea Point's Mojo Market launches this April 2017

Apr 05, 2017
Mojo Market
An entire block of a Sea Point retail space will be dedicated to a new, seven-day food…

Investing in student accommodation: pros and cons

Mar 31, 2017
Bill Rawson CEO
The recent protests at universities and colleges across SA have caused many to question…

Swapping power for change in SA's financial capital, Sandton Central

Mar 25, 2017
Sandton Central Elaine Jack
It will be lights out for Sandton Central, Joburg's premier business, shopping and…