'Business as usual' for Madison

Posted On Thursday, 19 June 2008 02:00 Published by eProp Commercial Property News
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Having assessed the possibility of merging with a number of its funds under management, Madison Property Fund Managers has lifted the cautionary under which it has been trading since March 2008

Property-Housing-ResidentialJSE-listed Madison Property Fund Managers is the asset manager of three property loan stock companies listed on the JSE Limited, ApexHi Properties Limited, Redefine Income Fund Limited and Hyprop Investments Limited, which potential merger could have created a mega-sized fund in the South African listed property context.

Asked why they are no longer pursuing the merger, executive director Wolf Cesman noted that a committee established to handle the matter concluded that market conditions "were no longer deemed appropriate"; also that debates around the strategic 'fit' of such merged entity as well as 'internal' vs 'external' managment apsects, were inconclusive. It is not clear if other factors, such as a corporate action threat, influenced the plan to merge in the first place, but for now he maintains that it will be 'business as usual' and the funds will continue to operate as a 'stable'.

Furthermore, Madison owns 34% of Corovest Fund Managers Limited, the management company of CIREF Limited which is listed on the London Stock Exchange’s AIM. Corovest also owns 50% stake in Wichford Property Management Limited, the property manager of London Stock Exchange listed property company Wichford Plc.

“We will continue to grow our business domestically and we are pursuing additional opportunities on foreign shores,” says Cesman.

Madison has a development pipeline valued in excess of R2.4 billion. These developments are located across South Africa and include offices, industrial, warehousing, retail space and a 132-room hotel.

“Property fundamentals remain sound,” says another executive director, Mike Flax. “The economic and market volatility currently being experienced is expected to continue during the current year and a number of opportunities are sure to emerge as a result.

Madison is already investigating a number of options for its managed funds and its own investment, to take full advantage of the potential this environment offers,” notes Flax.

Last modified on Monday, 21 April 2014 18:01

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