Property funds clear way for big merger

Posted On Monday, 13 July 2009 02:00 Published by eProp Commercial Property News
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Redifine Income Fund, ApexHi Properties and Madison Property Fund Managers have announced distributions to the end of last month, aligning all unitholders to the same period to pave the way for the proposed merger of the three companies.

Marc Wainer

The merger, awaiting Competition Commission approval, would result in Redefine becoming the second local property share after Growthpoint to make the Alsi Top 40 index.

Redefine would be the 34th largest share on the JSE with R22bn in property assets and a market cap of R19bn. Growthpoint and Redefine would account for 43% of the market capitalisation of the South African listed property index.

Madison executive director Wolf Cesman said the distributions to end of June were the last to be made from the individual entities.

“The transaction is awaiting Competition Commission approval which is expected in early next month. From the beginning of this month — the effective date of the merger — unitholders will receive Redefine distributions, comprising income from all three entities,” Cesman said.

Redefine announced a distribution of 18c per unit for the four months to June.

CEO Brian Azizollahoff said the distribution was lower than expected because an anticipated dividend from Wichford had not yet been declared and Redefine had not recognised trading profit of a material sale as transfer had not been registered.

ApexHi announced a combined distribution for the period April 1 to June 30 of 96c from 91c. The distribution exceeded the threshold of 93,75c per quarter when the A and B units start participating in the income growth, with the A units receiving 34,56c (36%), the B units 42,24c (44%) and the C units 19,20c (20%).

ApexHi’s fourth quarter distribution brought the total distribution for the 12 months to last month to 367,65c from 337c last year.

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