Redefine set to take full control of Fountainhead Property Trust

Posted On Monday, 29 June 2015 15:09 Published by
Rate this item
(0 votes)

Redefine Properties’ drawn-out battle to acquire Fountainhead Property Trust is nearing its end.

 

Marc Wainer

Redefine Properties’ drawn-out battle to acquire Fountainhead Property Trust is nearing its end, with the two property funds yesterday jointly announcing a takeover agreement. The transaction will see Redefine acquire the third of the shares in Fountainhead it does not already own, and now only requires the approval of shareholders to be completed.

Redefine has spent nearly three years trying to acquire Fountainhead and its portfolio, which is valued at about R13bn and contains some key metropolitan shopping centres. During this process it acquired Fountainhead’s management company and about two thirds of the trust’s shares. Growthpoint Properties made a competing offer for Fountainhead’s assets, but its bid was not accepted.

“Fountainhead’s property portfolio is very attractive, even if part of it has been neglected over the past few years. “Last year we made an attempt to buy the shares of Fountainhead we did not already own. We came just short in terms of the shareholder approval needed, but this time we offered a more attractive swap ratio in our agreement,” said Redefine’s executive chairman, Marc Wainer.

In terms of the proposed transaction, Fountainhead unit holders would receive 85 Redefine consideration shares, subject to rounding, for every 100 Fountainhead units in issue on the record date, expected to be August 7, directly from Redefine.

Portfolio manager at Investec Asset Management Peter Clark said that Fountainhead’s shareholders were likely to vote in favour of the transaction. “Long term this is the right move for Redefine as it increases the quality of its portfolio and its exposure to retail. However, short term it may cause some dilution,” said Mr Clark. 

Most Popular

Redefine Properties appoints Diane Radley to board of directors

Jul 21, 2020
Diane_Radley
JSE-listed diversified Real Estate Investment Trust Redefine Properties (JSE: RDF) has…

Another interest rate cut makes it the ideal time to buy, rather than rent

Jul 23, 2020
Carl Coetzee CEO of BetterBond
With the interest rate at its lowest in decades, after the welcome announcement today of…

Lower house prices in the Western Cape behind renewed interest from first-home-buyers

Jul 16, 2020
Carl Coetzee CEO of BetterBond
Property in the Western Cape is regarded by many as among the most expensive in the…

Lockdown and low interest rates drive huge growth in home loan applications

Jul 17, 2020
oobarometer Q2 2020
The second quarter of 2020 (Q2 20) commenced with two months of lockdown for the real…

Construction resumes on Old Cape Quarter Development

Jul 22, 2020
Old_Cape_Quarter
Following the required pause during lockdown, construction has once again resumed on the…

Please publish modules in offcanvas position.