Redefine’s Ciref listing deal approved

Posted On Tuesday, 08 June 2010 02:00 Published by eProp Commercial Property News
Rate this item
(0 votes)

Reserve Bank has granted approval for Redefine Properties to hold its interest in UK-based Ciref directly through a wholly owned South African subsidiary.

Redefine PropertyRedefine Properties CEO Marc Wainer said yesterday the Reserve Bank had granted approval for the company to hold its interest in UK-based Ciref directly through a wholly owned South African subsidiary, Redefine International, which would be listed on the JSE.

Redefine, which is the second largest listed property company with a market capitalisation of R21,1bn, had 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.

The increased investment in Ciref was in line with Redefine’s stated objective of channelling international property investments through Ciref.

Mr Wainer said following consultation and negotiation with the Bank, a structure had been approved for the listing of Redefine International on the JSE.

“Redefine International will be a property loan stock company with its shares linked to debentures to create linked units. Redefine International’s sole asset will be a controlling shareholding in Ciref,” he said.

Redefine International would be structured in such a way that a single linked unit in Redefine International would be equivalent to a single share in Ciref.

Simultaneous with the listing of Redefine International on the JSE, Ciref intends to undertake a capital raising to allow it to further develop its business.

As a result of the listing of Redefine International on the JSE, Ciref’s board has taken a decision to implement a name change for Ciref to Redefine International, with effect from the beginning of next month, which was approved by shareholders on December 18.

“It is anticipated that the listing of Redefine International on the JSE and the associated capital raising will be completed by the end of August,” Mr Wainer said.

However, Redefine last month warned distributions for the six months to August were expected to be marginally lower than the previous six months, primarily as a result of lower than expected dividends from London-listed Ciref, and reduced fee income.

Last modified on Tuesday, 22 April 2014 16:30

Please publish modules in offcanvas position.