Investec Property acquires Provest.

Posted On Thursday, 06 March 2003 10:01 Published by
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INVESTEC Property Group has moved to address concerns that it lacks the capacity to handle its large portfolio of units in listed property funds by acquiring Provest Management.

INVESTEC Property Group has moved to address concerns that it lacks the capacity to handle its large portfolio of units in listed property funds by acquiring Provest Management.

Durban-based Provest offers portfolio asset management services with a focus on the listed property sector to independent clients, including private individuals and corporate clients.

Provest brings to the Investec Property Group's stable assets under management of about R500m.

Investec Property Group's flagship property fund, Growthpoint, acquired a portfolio of units in 12 other listed property funds worth R650m last year.

When it was announced towards the end of last year, Growthpoint's decision to become a hybrid property loan stock company drew criticism across the industry. The criticism was mainly that Growthpoint or Investec Property Group did not have the asset management expertise to handle the portfolio of units in other listed property funds.

Further criticism was that Growthpoint's expertise was in direct property management. Handling a portfolio of units in listed funds required a professional asset management company.

Provest was to assume the management of Growthpoint's portfolio of units in the 12 listed funds.

Head of property fund management at Investec Property Group, Norbert Sasse, said Provest services also held synergies for other divisions within the broader Investec Group. The name Provest would be phased out in the long term.


Publisher: Business Day
Source: Sibonelo Radebe

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