Fountainhead to dispose of 27 properties

Posted On Wednesday, 25 June 2014 14:15 Published by
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Fountainhead Property Trust, which is managed and 66% owned by Redefine Properties, this week released 27 of its relatively smaller properties to the market.

 Len van Niekerk

The disposals, which represent a major step forward in Fountainhead's strategy to focus on larger core assets, are among the most anticipated in the market. They include office and industrial properties in the greater Johannesburg and Midrand area, as well as one small retail asset.

Fountainhead CEO, Len van Niekerk, comments, "These disposals are another important step in our strategy to concentrate our efforts on our core portfolio of larger property assets."

He adds, "Once these disposals have been completed, together with other properties held for sale, Fountainhead would have effectively halved the number of properties in its portfolio from the current number of 64. Yet, the disposal properties represent less than 5% of the value of the Fountainhead's property portfolio."

Fountainhead's diversified portfolio of properties is currently valued at R11.8 billion, with 75% of its properties by value being well-established metropolitan shopping centres.

Van Niekerk explains that, because of the large number of properties involved in the disposal, and broad market interest, Fountainhead is applying an innovative process to dispose of these properties in an efficient, effective and transparent way.

Van Niekerk adds, "Market interest in the properties has been keen and we expect to get a great result from this initiative both in terms of pricing as well as a relatively smooth disposal process."

Last modified on Wednesday, 25 June 2014 14:52

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