Liberty Two Degrees unit settles for manco

Posted On Monday, 28 November 2016 22:36 Published by
Rate this item
(0 votes)

Liberty will be managed by an external management company, manco, following its listing in December.

 Amelia_Beattie_CEO_of_Liberty_Two_Degrees

Liberty Two Degrees, the real estate investment trust (Reit) vehicle created by investment giant Liberty, will be managed by an external management company (manco), following its listing in December, even though this type of structure has been criticised in the listed property sector in the past.

Mancos are paid regular fees with a concern being that the management of these structures may make acquisitions for the sake of being rewarded instead of taking the long-term interests of shareholders into account.

But it would seem that Liberty Two Degrees, which will have R10bn in assets, exposing JSE investors to portions of various iconic malls such as Sandton City and Melrose Arch for the first time, has been designed to be managed by a manco on purpose. An important reason for this is to prevent the vehicle from becoming a takeover target, early in its life, according to one analyst.

Grindrod Asset Management chief investment officer Ian Anderson said while mancos were becoming less popular in SA, Liberty Two Degrees would be managed by one as it could block suitors from making acquisitive plays for the Reit.

“An external manco is not desirable but understandable in this instance,” he said.

source: Business Day

Last modified on Monday, 28 November 2016 22:52

Most Popular

Strong demand boosts Balwin as it claws back three months of no construction activity due to covid lockdowns

May 18, 2021
The Huntsman 2
JSE listed Balwin Properties, a developer that cares about environmentally responsible…

Construction kicks-off at the R500-million Boardwalk Mall

May 17, 2021
Architects presective of the exterior  of the Boardwalk Mall
Flanagan & Gerard Group and Emfuleni Resorts, a subsidiary of Sun International (JSE:…

Growthpoint leverages development prowess to re-imagine La Lucia Mall as a vibrant suburban mixed-use experience

May 17, 2021
Growthpoint_Kent_La_Lucia_Residential_Apartments
Growthpoint Properties (JSE: GRT) is applying its development expertise to unlock…

Successful degearing and continued dividend payments has allowed Investec Property Fund to continue rewarding shareholders

May 19, 2021
Andrew_Wooler_IPF (1)
Investec Property Fund, (“IPF”, or “the Fund”) today announced a resilient set of…

Residential sectional title sales again on the rise

May 27, 2021
Andrew_Golding_Golding_PropertyGroup
Over the past 15 years, the sectional title market in South Africa has become entrenched…

Please publish modules in offcanvas position.