Waterfront restructuring gets go-ahead

Posted On Monday, 03 June 2002 10:01 Published by
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The V&A Waterfront companies have been restructured, returning equity in Cape Town's mixed-use commercial property development to Transnet

V&A Waterfront

The complex deal has been approved by the Competition Tribunal as not affecting healthy competition.

The transport parastatal the original owner of V&A Waterfront sold the development to Transnet's pension fund in 1994, but retained ownership of the development's management company.

Transnet Pension Fund sold the portion of the property known as the marina, set aside for residential development, to V&A Properties.

Transnet Pension Fund was split into three funds the Pension Fund, Second Defined Benefit Fund and the Retirement Fund and these splinter funds jointly owned the V&A Waterfront development.

The transaction has consolidated all V&A Waterfront interests under a V&A Waterfront Holdings, through which Transnet and the three funds are merging their V&A Waterfront interests. It will be held in proportion to their contributions.

The consolidation affects V&A Marina, which owns a residential development; V&A Properties, which owns the main V&A Waterfront Development; V&A Waterfront a management company V&A Holdings; and V&A Realtors.

Following the deal Transnet acquires a minority interest in the development, with 74% to be shared by the three funds.

The transaction is being settled through the allotment and issue of shares and debentures in V&A Waterfront Holdings.

The tribunal says the acquisition of an equity stake in the V&A Waterfront development raised the risk of restricting the entry of new tenants to the Waterfront, as Transnet owns the harbour facility and could deny competitors access to the harbour.

However, there is no evidence to suggest any collusion with Transnet and the other pension fund companies that have a stake in the Waterfront, so the tribunal has granted the deal the go-ahead.

Last modified on Saturday, 08 March 2014 10:11

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