SA’s second-largest listed property group, Redefine Properties, has increased its holding in Ciref — the AIM-listed property investment company — to 61% in a series of transactions utilising the cash transfer capacity of South African institutions, commonly referred to as asset swaps.

Redefine said yesterday that the increased investment in Ciref was in line with its stated objective of channelling international property investments through Ciref.

In an unrelated transaction Redefine increased its stake in Corovest Fund Managers, the asset manager of Ciref and Wichford, from 34% to 76%, at a cost of £13m.

Redefine joint CEO Marc Wainer said yesterday the additional investments in Ciref and Corovest were in line with the group’s strategy of investing a portion of its assets internationally. “Where there are markets in distress, which is currently the case in the UK, Europe and Australia, there are opportunities for accretive acquisitions at yields superior to those that can be sourced in SA,” Wainer said.

He said Ciref would take advantage of such opportunities and the group would continue to build on the close relationship that had been forged. It would maintain an active interest in Ciref and Corovest.

Wainer said Redefine subscribed for £30m of Ciref shares by following a rights issue which it funded by way of £9,5m in cash via asset swaps and by exchanging its entire holding of 204,3-million shares in Wichford, which resulted in Redefine increasing its stake in Ciref from 29% to 55%.

Redefine acquired a further 23-million Ciref shares for £12m cash via asset swaps, increasing its stake in Ciref to 61%.

The group said that the proceeds would be partially utilised by Ciref to acquire a 13% shareholding in Cromwell Group, a property trust listed on the Australian Stock Exchange.

Redefine introduced the Cromwell transaction to Ciref.

The merger between Redefine, ApexHi Properties and Madison Property Fund resulted in Redefine becoming the second local property share after Growthpoint Properties to make the JSE Alsi Top 40.

Redefine appears on the Global Property Research 250 index, joining nine other South African companies on the list.