PETER PENHALL: Alec, it was always in our planning to have a look at opportunities to grow our asset base. The various properties that Rand Leases held fitted fairly well with our forward philosophy. And therefore our shareholding within that fund offered us an opportunity that we needed to look at.

MONEYWEB: And why has it taken such a long time? Is it a complicated deal, the structure?

PETER PENHALL: I think at first it was a situation where Rand Leases weren’t really that in favour of the deal.
But at a later stage I think they understood the rationale of focusing their own business on property development, and leaving the investment profile to a fund like Redefine to actually pursue.

MONEYWEB: A week ago you came out with an announcement to say that the purchase price has increased by R7m to R356m. You also mention there that there would be another property that would be coming along into the deal. Just explain exactly the process?

PETER PENHALL: Well, that was part of the same announcement. When we initially announced the deal we looked at acquiring four or five sections of a sectional title scheme. One of the initial tenants had an option to purchase three or four of the remainder of the sections. That option hasn’t taken place, and the tenants actually retained the option or the right to exercise that option at a later point in time. And our agreement, as noted in our initial announcement, actually catered for a price change in the event that that tenant didn’t actually take up the option.

MONEYWEB: So it's a pretty simple and logical reason?

PETER PENHALL: Absolutely straightforward and part of the initial planning of the deal.

MONEYWEB: Peter, I know you group is involved with the Rosebank Mall. Have you got any update for us on happenings there?

PETER PENHALL: Well, we are merely shareholders in the two funds and we obviously await further developments. The management arm of Redefine is largely involved in that deal and we make a point of keeping Chinese walls in place in that regard.

MONEYWEB: So you can’t help us with that?

PETER PENHALL: Really no comment at this point in time, other than to say there have been various public announcement with offers from the likes of Acucap and so forth. If one analyses that deal the Hyprop deal appears to be still a better deal from an onward value point of view. I think the Acucap deal might in fact create dilution.

MONEYWEB: Peter Penhall, chief executive of Redefine.