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Absa takes full control of Ambit subsidiary

Posted On Monday, 21 August 2006 02:00 Published by
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ABSA Bank has acquired full control of the management company of listed property company Ambit Properties for an undisclosed amount

Property-Housing-Residential

Ambit CEO Nick Harris said on Sunday Absa had acquired Marriott Property Services's 50% interest in Ambit's management company, Ambit Management Services.

Absa now owns 100% of the management company.

Harris said on Friday the acquisition carried with it a commitment to grow the Ambit portfolio to more than R1,5bn worth of properties, as well as the market capitalisation to more than R1bn. Ambit's asset base is worth about R885m.

Ambit was listed on the JSE in 2004 by joint promoters Absa and Marriott with a market capitalisation of R316 million.

The objectives of the two shareholders in the management company were not identical. It was thought it was best for one to take over and drive the company in the direction they could influence,said Harris.

Harris, who left Marriott when Ambit was listed in early 2004, said he would continue in his position as CEO. "The change comes with the personnel in the company. They are all employed by Marriott and seconded into Ambit Management Services. There will be a change of staff in Ambit Management Services."

Craig Ewin, MD of Marriott Property Services, has resigned from the Ambit board. But Marriott will continue offering management services to a large portion of Ambit's property portfolio.

There was earlier market speculation that listed property loan stock company Redefine Income Fund was looking to acquiring Ambit.

Last modified on Tuesday, 06 May 2014 10:43
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