Grapnel Property Group will dispose of its interests in management company Sycom Property Fund Managers to Parkdev for an undisclosed sum.
Sycom Property Fund Managers is the management company of listed property unit trust Sycom Property Fund. Parkdev is the asset manager of unlisted property fund Attfund.
There is market speculation the transaction could pave the way for the inclusion into Sycom Property Fund of some or all of the R6bn worth of properties belonging to Attfund. Both funds have similar blue-chip portfolios.
Attfund is one of the biggest unlisted funds in SA. Together with the recent acquisition of the Cape Gate retail centre it has more than R6bn worth of property assets. Sycom Property Fund said the assets were "very similar to those of Sycom".
Attfund's other assets include Clearwater Mall in Roodepoort; Woodlands Boulevard in Centurion; Garden Route Mall; Atterbury Value Mart in Pretoria, and a 25% interest in Centurion Mall. Attfund owns a number of office parks in Pretoria and the Cape, and holds a 23% interest in Sycom Property Fund.
"The transaction should be positive for Sycom. There'll be no change in the strategic thrust of Sycom, which will continue to develop and expand its existing portfolio," said Sycom Property Fund.
Gerald Nelson, MD of Grapnel and Sycom Property Fund, said he would resign as MD of Sycom Property Fund, but would remain on the property fund's board.
Nelson said Grapnel would still have a continuing relationship with Sycom Property Fund in its property developments and the sourcing of investments for the fund.
Andre Stadler, MD of Catalyst Fund Managers, said the key issue was that Attfund owned 23% of Sycom Property Fund and that its acquisition of the management company was "not surprising from that point of view. They (Attfund) will now have greater control over the management of their investment," said Stadler. He said the opportunity for Sycom Property Fund could lie in the R6bn Attfund portfolio finding its way into Sycom.
"We haven't heard anything from the new management in this regard. We haven't had any comment from current management (Grapnel) as to the role they may still play in Sycom going forward," said Stadler.
Angelique de Rauville, MD of Investec Listed Property Investments, said the announcement did not surprise her, given that Attfund had a ?big investment? in Sycom. "I don't know what Attfund's intentions are, but the likelihood would be to increase their stake in Sycom or acquire some or all of Sycom properties," said De Rauville. Another possibility was Attfund's portfolio being placed in Sycom.
"Attfund has a very attractive portfolio of properties, and having Attfund's properties sold into the listed property sector would be very favourable for the listed sector. Attfund has prized assets and it would also increase the market cap (market capitalisation) and liquidity in Sycom," said De Rauville.
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Publisher: I-Net Bridge
Source: I-Net Bridge
