THE expansion of Redefine Income Fund into the Western Cape is to be managed entirely by Solomon Brothers Property Holdings. This follows a deal in which Solomon Brothers sold six Cape Town properties as well as 20-million linked units in Arnold Property Fund to Redefine for about R133m.

Solomon Brothers becomes Redefine's second property asset manager, along with Corp Capital, which has aired concern about Redefine's new cost structure. Redefine CEO Peter Penhall dismisses suggestions that this structure may be expensive, saying the appointment of Solomon Brothers as Western Cape asset managers should not introduce extra costs.

Marriot Property Services director David Green says a structure with more than one asset manager for a single portfolio is acceptable providing it does not result in any additional costs for the fund.

Redefine's two previously owned properties in the Western Cape will be bundled into the portfolio to be managed by Solomon Brothers, which will manage all Redefine interests in the province. Penhall says that with only two properties in the Western Cape, Redefine needed a partner who understood the region if it hoped to expand.

'Solomon Brothers directors David and Jeffrey Solomon have joined the Redefine board. The portfolio under review consists of properties located in Cape Town's central business district.'