Pangbourne buys 34% iFour stake.

Posted On Friday, 14 March 2003 10:01 Published by eProp Commercial Property News
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Pretoria - Pangbourne Properties, the listed property investment company, has acquired a 34 percent stake in listed property loan stock company iFour Properties, in deals valued at R111.4 million.

Property-Housing-ResidentialPangbourne acquired 17.8 million linked units in iFour at R5.72 a unit from Growthpoint and the Mine Employees' Pension Fund, in a paper swop of 2.86 million ApexHi Properties B units and 32.98 million Allan Gray Property Trust units.

A further 1.86 million linked units were bought on the open market at an average of R5.01 a unit. 

Anthony Diepenbroek, iFour's chief executive, said the value of the main transaction would probably have been less had it been a cash deal.

He said Pangbourne's investment was a significant vote of confidence in iFour's strategy and operation, and underlined the company's position as an independent listed entity.

He added that the deal was in line with iFour's stated intention of striking up new partnerships to bulk up its portfolio to R2 billion.

"Our shareholders will benefit from this strategic alliance as it will facilitate growth of the portfolio, thereby enhancing liquidity.

"It also assures us of a greater spread of investment stock and will allow us to leverage improved economies of scale."

Diepenbroek said discussions with Pangbourne had been cordial as both companies recognised a clear synergy of strategies.

"Our excitement with this relationship goes beyond the equity Pangbourne brings to the table. We are also encouraged by the strategic synergies between the two companies and the complementary nature of our skills and emphasis on in-house asset management," he said.

iFour, which made its debut on the JSE Securities Exchange last June, has a portfolio valued at R730 million comprising 48 investment-grade metropolitan properties.

Athol Campbell, Pangbourne's chief executive, said that by mobilising its financial strength, the deal reinforced Pangbourne's position as a key player in the real estate sector.

"With Pangbourne's assistance, iFour will be able to increase its portfolio in the short term," he said.

Pangbourne has a property portfolio valued at R1.25 billion and a 90 percent stake in property-related short-term finance company Paforma.

Pangbourne gained 22c to R7 and iFour was up 35c to R5.50 yesterday.

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