REDEFINE Income Fund has set its sights on the assets of Bonatla Property Holdings and those of Fairvest Property Holdings, which will bring it in confrontation with Niki Vontas, founding director of the two listed companies, and his group.

PROPERTY loan stock company Redefine Income Fund has raised R136m to be used for debt reduction through a private placing of 54,6-million of its linked units at 250c a linked unit.

Tempers are wearing thin in the JSE Security Exchange's real estate sector, where burgeoning investment funds compete for slim pickings of scrip in 20 property unit trusts (PUTs) and property loan stock companies (PLSs).

A new fund for for those with the right appetite.

Pretoria - Redefine Income Fund's R356.4 million bid to acquire a portfolio of 27 investment properties from Rand Leases Properties (RL Props) had been approved by linked unit holders of both companies, the listed property loan stock company reported yesterday.

REDEFINE Income Fund CEO Peter Penhall has challenged criticism of the hybrid property loan stock company structure, saying specialist equity managers would not necessarily have the depth of knowledge of the property market a hybrid's manager has.

MONEYWEB: Welcome to Redefine chief executive Peter Penhall. The deal has been dragging on for quite some time. Perhaps just by way of background, Peter, why does Redefine want to buy these properties from Rand Leases?

Three funds have issued cautionaries

Growthpoint's decision to invest in a portfolio of linked units signals the growing popularity of a hybrid property loan stock structure, but questions about the merit of this hybridity remain.

Property loan-stock company Redefine Income Fund has been working around the clock to restore a 5050 portfolio split between directly held property and listed property securities and at the same time grow its overall portfolio.