Redefine makes carefully timed purchase of Paramount units

Posted On Thursday, 01 July 2004 02:00 Published by eProp Commercial Property News
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Redefine Income Fund today announced that it has purchased 6,031,600 Paramount Property Fund ("Paramount") linked units for R21,110,600, or R3.50 per unit.

Brian AzizollahoffThis has increased Redefine's holding in Paramount to 18,491,260 units, 24% of the linked units in issue. The Paramount units were purchased ex-distribution, which is payable on 12 July 2004.

This purchase results from Redefine's swift reaction to changing market conditions in order to maximise returns. Redefine has disposed of a select number of its listed securities that currently offer returns of between 10.5% and 11%, in favour of Paramount, which, at its current price, provides a return in excess of 14%.

"Paramount is currently trading at a significant discount of approximately 20% to net asset value, while this transaction is funded through Redefine's sale of selected counters that are trading at a premium to net asset value," said Redefine Income Fund CEO Brian Azizollahoff.

"This purchase has been carefully timed by Redefine, managed by Madison Property Fund Managers, which has been evaluating Paramount, amongst other funds, for some time."

"Paramount is a growing fund. It has sorted out the problems that occurred as a result of the initial timing of its listing. It has strong, skilled management and we believe that it represents good long-term earnings for Redefine," said Azizollahoff.

"Redefine's continual assessment of the performance of all the funds in the listed property sector means that it can take advantage of an opportunity as it presents itself, thus obtaining the greatest benefit through prompt action," said Azizollahoff.

Rodney Squire-Howe, MD of Paramount, indicated that the management of Paramount are delighted that Redefine has decided to make such a significant investment in the company.

"The faith they have placed in the management of Paramount augurs well for the future, and we are confident that, with the support of our major shareholders, Paramount will grow from strength to strength," said Squire-Howe.

Redefine Income Fund

Brian Azizollahoff or Bradley Salters (Chief Financial Officer)

Tel: 011 283 0000

Cell: 083 255 2351 (Brian) Cell. 083 378 4662 (Bradley)

Or

Marketing Concepts

Sandy Davey

Tel: 011 880 2213

Cell 083 453 6668

Last modified on Wednesday, 14 May 2014 09:52

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