Subsequent to a market announcement on 25 February this year detailing the conclusion of a co-operation agreement between Delta, Rebosis and Ascension to explore a tripartite merger of the parties, the Funds today announced that although the principle of collaboration was never in doubt, the timing of the proposed merger was inopportune.

"The pragmatic conclusion of the Ascension transaction is in the interest of all stakeholders. Although the rationale for the merger was never in question, a number of individual opportunities presented themselveswhich made us decide that it was in the best interest of all stakeholders to shelve negotiations," Delta CEO Sandile Nomvete commented.

In terms of the cooperation agreement, Delta has sold its entire holding of linked units issued by Ascension (being 28 001 628 Ascension A linked units (AIA) and 82 575 341 B linked units (AIB)) fora cash consideration of R4.76 per AIA unit and R2.61 per AIB unit, being the 30 day volume weighted average price per unit taken prior to signature of the Sale Agreement.

"We concluded our due diligences on the assets of Ascension and Rebosis and were happy with the outcome, however we believe that the cash received in terms of the transaction announced today can be better deployed to create shareholder value." explains Sandile Nomvete, CEO of Delta

"We will continue to focus the team's energy on our strategy of holding a significant presence in government nodes,"adds Bronwyn Corbett, Delta's CFO and COO.

We listed in November 2012 with a mandate to grow the fund by 30% per year for five consecutive years. Prudent management and focus allowed us to achieve higher distribution growth versus the sector. Our exceptionally low vacancy rate, long lease terms and contractual escalation rates illustrates the importance of the sovereign underpin to our portfolio," she added.

To continue delivering on its mandate, Delta will focus on strategic partnerships going forward. "Our acquisitions will include not only brick and mortar assets but skills and capacity too,"Nomvete added.

"This will add to our current depth of skills, allowing us to continue doing what we're good at – creating stakeholder value in a very specialised niche," he remarked.

According to Nomvete, the launch of Delta International is indicative of the skill set and experience in the Group. "We are very excited about the launch of Delta International, which will be the first outright Africa property listing on the JSE offering a dollar denominated rand hedge."