Economy and Finance Reporter

RENTMEESTER, a 70%-owned subsidiary of Rentsure, last week announced the disposal of certain of its properties to property company, Daisy Street for R91m.

Rentsure said the board of directors had approved the disposal in order to realise a significant portion of Rentmeester's property portfolio in cash so the group could increase future returns on its assets.

Rentmeester intends to redistribute its investment risk profile over a larger property portfolio with the possibility of realising such property-based instruments within two to three years.

The group's investment in fixed property was stated at a value of R118,5m in Rentsure's consolidated balance sheet for the year ending June 30 last year, which represented more than 30% of Rentsure's total assets at that date.

The original agreement dated September 20 last year was superseded by an amended agreement in November this year in terms of which Rentmeester would dispose of its property-owning and leasing business to Daisy Street.

The R91m will be paid by way of a R20m cash payment to Rentmeester and the balance will be paid through the issue of compulsory convertible debentures in Alpina to the value of R20m and redeemable debentures in Fairvest to the value of R51m.