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Vukile Property Fund withdraws from acquisition discussions with Synergy

Posted On Wednesday, 03 September 2014 22:35 Published by
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Vukile Property Fund today announced it had withdrawn from acquisition discussions with Synergy Income Fund. 

Laurence Rapp Vukile CEO

Vukile acquired some 49% of Synergy B linked units in December 2013. 

Laurence Rapp, CEO of Vukile, comments: “We have been unable to agree terms with the board of Synergy. Whilst we remain of the view that Vukile and Synergy unitholders would benefit from consolidation, we will only pursue a transaction which, based on the underlying property fundamentals and pricing, is appropriate and enhancing to our unitholders.”

Synergy would have given Vukile exposure to a defensive portfolio of retail properties that serve the lower income and emerging middle markets.

The acquisition withdrawal comes after the failed tripartite merger between Delta Property Fund, Rebosis Property Fund and Ascension Properties. 

Mduduzi Ngwenya, Managing Director of eProp comments:"Whilst liquidity and diversification drive for consolidations in the sector, the deals have to enhance shareholder value and make business sense. Vukile would have absorbed a great set of assets, however Synergy's speciality as a medium-sized rural based shopping centre fund would have been compromised."     

JSE-listed REIT Vukile holds a diversified portfolio of 81 property assets valued at R10.3 billion and has a market capitalisation of R8.1 billion.

Last modified on Thursday, 04 September 2014 00:06
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