Lower vacancies put MICC ahead

Posted On Friday, 03 December 2004 02:00 Published by eProp Commercial Property News
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Listed property loan stock company MICC Property Income Fund, which listed on the JSE Securities Exchange SA in October last year, on Wednesday reported distributions to unitholders for the year to September ahead of forecast.

Gerald LeissnerMICC chairman Hardie Joubert said the main reasons for the company's good performance were reduced vacancies within in its property portfolio and the overall decline in property financing costs.

Vacancies were reduced from about 8,9% at listing to 6,1% in September this year.

MICC declared a distribution of 40c a unit, exceeding the forecast in its listing prospectus by 3,38c.

It also reported that its yield, at 15,4%, was marginally up on the prospectus forecast.

The company owns 40 properties, including retail, industrial and commercial office properties, throughout SA and Namibia.

MICC's interim distributions to unitholders for the period in March were also higher than it s forecast, with the company's distribution at 37c. It had forecast 36c.

The company is the centre of a bidding war between listed property loan stock rivals Vukile Property Fund and ApexHi Properties.

In September both property companies made an offer to MICC unitholders to acquire all the listed linked units in the company.

Since then it has emerged that neither ApexHi or Vukile is likely to gain 100% of MICC's linked units.

Earlier this week Vukile conceded it was unlikely to acquire the entire issued capital of MICC as originally planned, saying it was likely to acquire at least 62% of MICC.

ApexHi is expected to obtain a significant interest in MICC and said it had bought just more than 10% of MICC's linked units.

ApexHi CEO Gerald Leissner also said at the time the company fully expected to be a significant minority unitholder in MICC.

Vukile is offering 126 new Vukile linked units for every 100 MICC linked units, while ApexHi is offering to buy all MICC's linked units for a consideration of 36 ApexHi A units and 36 ApexHi B units for every 100 MICC units, or R320 in cash, 18 ApexHI A and 18 ApexHi B units.


Last modified on Wednesday, 14 May 2014 12:09

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