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Capital set for growth phase as Old Mutual reshapes management company

Posted On Friday, 18 June 2004 02:00 Published by eProp Commercial Property News
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Old Mutual and Millennium Consolidated Investments to link to grow Capital Property Fund

Property-Housing-ResidentialCapital set for growth phase as Old Mutual reshapes management company

In a series of transactions facilitated by Old Mutual, MCI Properties has acquired an effective controlling 50,4% interest in Property Fund Managers Ltd (“PFM”), the management company of Capital Property Fund.

Old Mutual will hold an effective 19,6% and Resilient Property Income Fund 30% of PFM. In April Resilient acquired 25% of Capital for R101 million and a 25% interest in PFM. Previously Old Mutual, JHI Real Estate, CorpCapital and Mines Pension Fund each held 25% of the equity in PFM.

Cyril Ramaphosa, the chairman of Millennium Consolidated Investments and of PFM, commended Old Mutual for “their foresight in investing in the development of black players in the property industry.”

“It is the stated intention of the parties that in due course MCI will acquire a meaningful interest in Capital units, thus aligning its interest in the management company with an investment in the Capital portfolio,“ says Rowland Chute, executive director of Old Mutual Properties. 

“The change in control of PFM heralds the intention of the major institutional investors in Capital to substantially increase the value of Capital’s assets, through the acquisition of additional properties from various institutional players.

“The PFM transaction is in line with Old Mutual‘s strong commitment to the financial sector charter and the urgent need to create opportunities for BEE participation in the SA property industry. The combined strengths and expertise of the shareholders in PFM will provide Capital with significant intellectual muscle to implement its strategy of developing into a large market capitalisation fund delivering superior returns to the unitholders,” says Chute.

Thando Sishuba, managing director of MCI Properties, says: “We are excited to be a part of this initiative with excellent partners in Old Mutual and Resilient.  This marks MCI Properties’ entry into the growing listed property sector, in which we intend to play a significant role into the future.”

INQUIRIES: Cyril Ramaphosa/Thando Sishuba 011-305-8900
                     Rowland Chute 021-530-4519
ISSUED FOR Old Mutual Properties/MCI/PFM
BY  Michael Kerkhoff & Associates 021-424-5280

Last modified on Tuesday, 13 May 2014 12:01

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