SA-based Corovest Property Group said yesterday that its Corovest International unit had sold its stakes in UK retail property fund Sapphire and its management company for about R195m a 40% return on the original cost of about R100m.
Corovest, which is a wholly owned subsidiary of Coronation Investments and Trading, said by selling in the UK's rising interest rate environment, it had timed the deal to deliver higher-than-expected returns to investors in "half the time originally anticipated".
Corovest director Michael Aitken said the company calculated the return on the stake, bought in November 2001, by annualising it over the period between purchase and sale.
In SA, Corovest provides fund management services to South African listed funds Hyprop and Sycom . It was appointed manager last year for the troubled Arnold Property Fund.
Corovest International's 25% stake in Sapphire Retail Fund, housed in the Cayman Islands-based Corovest International Real Estate Fund , and its 33,3% stake in Sapphire's management company, were sold to Multiplex of Australia.
Corovest CE Michael Watters said the Sapphire investment had been aimed initially at securing a foothold in the UK property market.
May 21 2004 07:15:00:000AM Nick Wilson Business Day 1st Edition
Publisher: Business Day
Source: Business Day
