| Thu 17 May 2001, 0:00 | | BONATLA PROPERTY HOLDINGS LIMITED |
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BONATLA/CATALYST/BROLL - OUTSOURCING OF BONATLA ASSET MANAGEMENT
Bonatla Property Holdings Limited (reg. no.: 1996/014533/06)
("Bonatla")
Catalyst Property Asset Managers (Pty) Ltd (reg. no.: 1994/010496/07)
("Catalyst")
Broll Property Group (Pty) Ltd (reg. no.: 1991/006198/07)
("Broll")
Outsourcing by Bonatla of asset management and administration of property
assets
Shareholders are advised that the board has concluded an agreement with
Catalyst to undertake the asset management and administration of Bonatla's
property assets, with immediate effect. Asset management will be undertaken
by Catalyst and the administration by Broll, both wholly-owned subsidiaries
of Catalyst Holdings (Proprietary) Limited ("Catalyst Holdings").
The decision to outsource management was prompted by rapid growth of the
portfolio from an original listing value of R240 million to nearly R700
million. The decision is in line with international trends. It will allow
Bonatla to take advantage of Catalyst Holdings' and its subsidiaries'
extensive market knowledge, expertise and national operations.
The board believes that active management of Bonatla's debt in the current
low interest rate environment will significantly reduce the cost of debt and
thus enhance the prospects of increased profits and payment of dividends. As
an expression of confidence in Bonatla's future, Catalyst Holdings has
subscribed for 8 million compulsory convertible debentures of R1 each.
As previously announced, the board has been reconstituted to reflect changes
in management. The board now consists of Messrs MH Brodie, JD Broll, RD du
Plooy, J Styger, MH Viljoen, NG Vontas and BJ van der Ross. BJ van der Ross
has succeeded MH Brodie as chairman. Messrs Broll and du Plooy represent the
Catalyst group.
By order of the Board
Corporate Governance CC (reg. no.: 1994/023438/23)
Secretary
Sponsor
Grant Thornton Kessel Feinstein
Corporate Sponsors (Pty) Ltd
Registration number: 2000/003541/07
Press release:
May 17, 2001
BONATLA'S ASSETS TO BE MANAGED BY CATALYST
Bonatla Property Holdings Ltd said today it had concluded an agreement with
the Catalyst Holdings group to manage its R670 million portfolio.
The asset management of the portfolio, comprising 55 properties, mainly in
Gauteng and KwaZulu/Natal will be undertaken by Catalyst Property Asset
Managers. Administration will be handled by Broll Property Group. Both are
wholly-owned subsidiaries of Catalyst Holdings in which Nedcor subsidiary,
Cape of Good Hope Bank, has a 30 % stake.
The portfolio comprises mainly industrial premises (57%), with the rest
spread across offices (25%) and retail (18%). It has a vacancy ratio of
5,7%.
It was reported last December that Bonatla's board had decided to outsource
management following rapid growth of the portfolio from an original listing
value of R240 million to nearly R700 million.
The board was reconstituted last month to reflect changes in management. Ben
van der Ross, a director of FirstRand, NasPers and Pick 'n Pay, succeeded
Mackie Brodie as chairman. Brodie and the former managing director, Niki
Vontas, remain on the board as non-executive directors. Two Catalyst group
representatives, Jonathan Broll and Royden du Plooy, were appointed as
directors.
Du Plooy, managing director of Catalyst Property Asset Managers, said the
addition of the Bonatla portfolio meant Catalyst now had R1,5 billion in
assets under management.
"Catalyst is confident about Bonatla's future and has subscribed for R8
million compulsory convertible debentures at R1 each. Active management of
Bonatla's existing debt in the current low interest rate environment is
likely to significantly reduce the cost of debt and enhance prospects of
increased profits and of payment of dividends. "
Du Plooy said plans for Bonatla included further acquisitions of ungeared or
low-geared properties to reduce the average level of gearing in the company.
A transfer of listing to the property loan stock sector was also under
consideration.
Ends
ISSUED FOR Catalyst Property Asset Managers
BY De Kock & Kerkhoff Communication Consultants
INQUIRIES Royden du Plooy 021-683-7773
Mike Kerkhoff 021-424-5280
