PROPERTY loan stock company Redefine Income Fund moved closer to the R2bn asset mark with a R300m shopping spree last week.

The group acquired 3,5-million linked units in property loan stock company SA Retail from Sanlam Investment Management for R164m.

The group also bought six Cape Town properties and 20-million Arnold Property Fund linked units from Solomon Brothers Property Holdings for R133m.

The acquisitions continued the strong corporate activity seen recently in the listed property sector of the JSE Securities Exchange SA. The sector has been growing rapidly through acquisitions and new listings, and is also seeing some consolidation.

Redefine is one of the companies that has been on the acquisition trail, growing more than 50% in the past 12 months.

The value of its hybrid asset base of listed securities and directly owned properties is now R1,8bn.

Redefine CEO Peter Penhall says: 'In both deals we have taken advantage of rapidly changing market forces operating in both the listed property sector and the physical property market.' The counters were acquired below the price at which they were listed last year, he said.

Half the R164m stake in SA Retail was settled in cash and the rest in 36,5-million Redefine linked units, to be issued at 225c a unit. The transaction gives Sanlam a 11,2% stake in Redefine.

The Solomon Brothers transaction, which establishes presence for Redefine in Western Cape, was settled through R80m in cash and the issue of 24,6-million Redefine units at 215c a unit.

Solomon Brothers will remain responsible for the asset management of Redefine's Western Cape property portfolio which is all in Cape Town's central business district.

Solomon Brothers directors David and Jeffrey Solomon have joined Redefine's board.

Redefine's listed investment securities include HyProp, Marriott (Martprop), GrayProp, Growthpoint, Sycom and ApexHi.

Penhall says the group has always seen the Western Cape property market as an area offering value. Business Day