Redefine in R12,3bn deal

A record deal in the listed property sector is on the cards as JSE-listed property company Redefine Income Fund yesterday announced its plan to purchase ApexHi Properties and Madison Property Fund Managers in a deal worth R12,3billion.

A record deal in the listed property sector is on the cards as JSE-listed property company Redefine Income Fund yesterday announced its plan to purchase ApexHi Properties and Madison Property Fund Managers in a deal worth R12,3billion.

The boards of all three companies "strongly support" the initiative, Redefine said yesterday. If successful, Redefine will become the second-largest listed property company in the country, with an estimated market capitalisation of R19billion and a management team drawn from the three companies.

Redefine said its unit holders would benefit from increased earnings of about 10percent and greater access to capital market funding at competitive rates.

Gerald Leissner, chief executive of ApexHi, said that ApexHi unit holders could expect a "substantial capital up-lift with a marginal decrease in distributions which makes this an excellent transaction for all parties".

Subject to the approval of Redefine's unit holders and debenture trustee and regulatory requirements, the acquisition will be effective as of June 1 2009. - Staff reporter

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