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

Introducing cutting edge tech to the property industry

Feb 28, 2017
Virtual Reality Technology
Positioning ourselves at the cutting edge, Fieldspace Property Group is transforming the…

Calling all Cape Town owners and managers of commercial buildings and operations: Let’s talk energy and water

Mar 04, 2017
CoCT Energy Efficiency Forum
Join us for the Energy Efficiency Forum on 16 March at 8:30 for 9:00 until 12:30 followed…

The Polofields development launch met with great excitement

Feb 27, 2017
The Polofields apartment block
Balwin, South Africa’s largest homebuilder focusing on large scale sectional-title…

REBOSA opposes racist property advertisement in the strongest terms

Mar 02, 2017
Jan le Roux REBOSA
The real estate industry has been placed under an uncomfortable spotlight yet again with…

Making green affordable housing a reality

Mar 07, 2017
Belhar Gardens
Nedbank Corporate and Investment Banking (NCIB) today announced that is has made the…