Resilient buys into Capital Property Fund

Posted On Friday, 16 April 2004 02:00 Published by eProp Commercial Property News
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Property loan stock company Resilient Property Income Fund has acquired a 25% stake in property unit trust Capital Property Fund as well as 25% of the fund's management company, Property Fund Managers.

Property-Housing-ResidentialIN A deal worth more than a R100m, property loan stock company Resilient Property Income Fund has acquired a 25% stake in property unit trust Capital Property Fund as well as 25% of the fund's management company, Property Fund Managers.

Resilient said yesterday the deal, which increases its market capitalisation to R720m, would allow it to "unlock value through intensive asset management and to increase operating efficiencies by enlarging the existing Capital portfolio".

The company said that it had acquired 25% of the issued share capital of Capital from Redefine Income Fund for a R101,4m, 50% of which is payable in cash and 50% of which will be settled by the issue of Resilient units.

Resilient also concluded an agreement to acquire 25% of the shares in and claims against Property Fund Managers from Madison Property Fund Managers. The purchase price of the equity stake in Property Fund Managers was about R1,4m payable in cash.

Resilient said because Capital was a property unit trust and that its management company was registered in terms of the Collective Investment Schemes Control Act, the acquisition of the equity in the management company was subject to securing the approval of the registrar of collective investment schemes.

It said that the application for approval had been submitted to the Financial Services Board and unitholders would be advised as soon as an approval was obtained.

Resilient also made substantial acquisitions late last year.

In November it announced that it had acquired a regional mall in Tzaneen for R83,3m and disposed of an office block for R35m. The group said it wanted to increase its retail exposure and eliminate its office component. 

Last modified on Saturday, 10 May 2014 09:34

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