SA Corporate Real Estate changes course on strategy

Posted On Friday, 31 October 2008 02:00 Published by eProp Commercial Property News
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A recently announced strategy deemed necessary to improve the quality of earnings and to generate sustainable long term distribution growth - including portfolio investment objectives, specific building strategies and a programme to buy back units - has been revised

Property-Housing-ResidentialOne of the portfolio investment objectives was to increase investment in larger, dominant retail centres including a minority interest in six properties in the Old Mutual Group’s portfolio of high end, dominant regional and super-regional shopping centres. However, given the changes in economic conditions and investment markets, together with the pricing of these assets, negotiations in respect of the retail acquisition opportunity have been terminated.

Whilst a unit repurchase programme commenced on Monday, 13 October 2008, further to the company's decision not to pursue the retail acquisition opportunity, this now also terminates with immediate effect. A total of 6,3 million units were purchased by the fund at a weighted average cost of 221 cents per unit. A general authority to repurchase units, granted at the annual general meeting held on 24 April 2008, still applies subject to the availability of funding and the investment merits thereof.

Management is still proceeding as planned with it's disposal strategy. Negotiations with various potential purchasers are taking place and there are reportedly encouraging signs of early progress.  Based on current investment parameters, the proceeds from these property disposals will be channelled towards funding the buy back of units.

Last modified on Monday, 21 April 2014 08:56

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