Pangbourne, which facilitates the creation of specialised property funds for investors, plans to inject an office-property portfolio into Calulo and create a larger focused office fund.

“This is in line with Pangbourne’s strategy of creating a property house of specialised associated listed property companies in which Pangbourne holds strategic stakes,” said Pangbourne CEO Craig Hutchison.

Hutchison said Calulo had a “very good portfolio in it”, and contained a mixture of property types. But he said Calulo had not been attractive to investors because it did not have “significant size” with properties worth about R600m.

In terms of the deal, Pangbourne would acquire the 40,6% interest in Calulo held by Matemeku Property Acquisitions 104, a company controlled by businessman Moss Mashishi.

Hutchison said Matemeko had specifically offered its unitholding in Calulo to Pangbourne.

He said the same offer agreed on for Matemeku’s stake would also extend to Calulo’s minority unitholders.

The 40,6% stake would be acquired at a price of 300c a linked unit.

“Pangbourne is obliged to extend an offer to the Calulo minority unitholders to acquire all or part of their Calulo linked units on the same terms as those applicable to the Pangbourne Matemeku acquisition,” said Pangbourne.

Mpho Diale, chairman of Calulo Properties, a separate investment group which owns an 18,1% interest in Calulo Property Fund, said the group would not be taking up the offer to minorities. Diale said Calulo Properties would maintain at least its 18% interest in the listed property fund during the bulking-up exercise.

Pangbourne had concluded agreements to acquire the company providing asset-management services to Calulo.

“This is by no means a hostile takeover. It is a friendly takeover, and it’s a matching of synergies among companies,” said Hutchison.

Pangbourne owns a 36% interest in listed property loan stock company iFour, a 43% interest in retail-focused property company Siyathenga, as well as a 70% stake in unlisted property finance company Paforma.