CENPROP UNITHOLDERS ENDORSE STRATEGY

Posted On Friday, 07 March 2003 10:01 Published by
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In excess of 90 percent of unitholders in Centrecity Property Fund (Cenprop) yesterday overwhelmingly endorsed the management company’s strategy to unlock value for unitholders and wind-up Cenprop...

In excess of 90 percent of unitholders in Centrecity Property Fund (Cenprop) yesterday overwhelmingly endorsed the management company’s strategy to unlock value for unitholders and wind-up Cenprop when they voted at the unitholders meeting to sell The Mall and JHI House in Rosebank to Hyprop Investments (Hyprop) for an effective R360 million and 2 Long Street in Cape Town and Southway Mall in Durban to Capital Property Fund (Capital) for R68 million.

 

Charles Ryan, a director of the management company, Property Fund Managers (PFM), said that over the last two years PFM had examined several alternative strategies for Cenprop before recommending the Hyprop and Capital proposals to unitholders, which it believed represented the best offer and good business sense.   In acting in the best interests of unitholders, PFM had properly dealt with other potential purchasers of the properties ensuring that their offers would be open for a period beyond yesterday’s meeting date and in the process had procured higher purchase prices for the properties compared to the initial proposals.

 

He added that virtually all Cenprop’s unitholders indicated that they would accept the offer for units in Hyprop and Capital going forward and participate in the growth strategies being adopted by those Funds.   The Mall and JHI House are compatible with Hyprop’s major investments comprising the Hyde Park Shopping Centre and The Glen Shopping Centre as well as a number of prime office buildings.   PFM will now focus its attention on developing Capital through improvement and expansion of its portfolio.    Ryan stated that he believed that a new foundation had been established for Capital and that unitholders would achieve growth in earnings and capital value as the new strategy is implemented.

 

The implementation of the transactions and the winding-up of Cenprop is still subject to Court sanction which it is anticipated will be obtained before the end of March 2003.


Publisher: JHI Real Estate LTD.
Source: JHI Real Estate LTD.

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