| Tue 6 Mar 2007, 11:01 | | SAC - SA Corporate Real Estate Fund - Press releas |
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SAC
SAC
SAC - SA Corporate Real Estate Fund - Press release: BEE Deal
SA Corporate Real Estate Fund
(formerly Martprop Property Fund)
(Incorporated in the Republic of South Africa)
Share Code: SAC ISIN Code: ZAE000083614
A Collective Investment Scheme in property registered in terms of the
Collective Investment Schemes Control Act, No. 45 of 2002 and managed by SA
Corporate Real Estate Fund Managers Limited (formerly Marriott Property
Fund Managers Limited)
(Registration number 1994/009895/06)
("SA Corp" or "the fund")
PRESS RELEASE - BEE DEAL
BEE CONSORTIUM SET TO ACQUIRE 11% STAKE IN SA CORPORATE REAL ESTATE FUND
A BEE consortium comprising Women Investment Portfolio Holdings Limited
(WIPHOLD) and Kensani Properties (Pty) Ltd is set to acquire a R636 million
stake in SA Corporate Real Estate Fund.
SA Corporate which will become a diversified R7 billion fund following 97%
acceptance for its recent offer to unitholders of SA Retail Properties Ltd,
said today a relationship agreement had been concluded with Wiphold and
Kensani Properties.
Peter Sparks, managing director of SA Retail, said that before the offer by
SA Corporate, Whirlprops 33 (Pty) Ltd, a company owned predominantly by Old
Mutual Property Investments and Nedbank, was negotiating the disposal of
its 27% SA Retail unitholding equally to WIPHOLD and Kensani. .
Craig Ewin, head of listed real estate at Old Mutual Property Investments,
which manages both SA Corporate and SA Retail, said Whirlprops had agreed
to accept the SA Corporate offer of 3,05 linked units for every one SA
Retail unit. Whirlprops had also agreed to dispose of those SA Corporate
units to WIPHOLD and Kensani Properties at an effective price of R10.04 per
SA Retail unit. This translates into a price of 329 cents per SA Corporate
unit. On approval of the SA Corporate offer to acquire all SA Retail linked
units, the BEE consortium would own an 11% stake in SA Corporate
"Since an existing unitholder is disposing of units to the BEE consortium,
SA Corporate benefits from the introduction of an empowerment partner
without having to issue new units at a discount and without providing
ongoing financial support in terms of funding the transaction, "he said.
Roger Perkin, MD of SA Corporate, said the fund was delighted with the
quality of its BEE partners.
"WIPHOLD, a pioneering black women-owned company, was one of the first
companies to establish a permanent broad-based black shareholding. With a
13-year track record, WIPHOLD has demonstrated an ability to enhance its
strategic investments. The company`s awards and accreditations are
numerous.
"Louisa Mojela, the CEO of WIPHOLD, will participate in the SA Corporate
board and board sub-committees in due course, and Gugu Mthethwa, a key
executive in WIPHOLD, will act as an alternate.
"Musa Ngcobo, CEO of Kensani Properties, as the chairman of the SA Property
Owners` Association Charter Committee, was actively involved in the
finalisation of the Property Charter. Similarly, Musa will participate in
SA Corporate in a non-executive capacity. "
Ewin said it was the intention of the parties that WIPHOLD and Kensani
will, in due course, acquire a 10% stake in the management company, SA
Corporate Real Estate Fund Managers Ltd.
"The management team of SA Corporate are confident of the value that
WIPHOLD and Kensani can provide and look forward to their contribution to
strategic issues and the growth of the fund.
"The relationship agreement between SA Corporate and the BEE consortium
provides for, amongst other things, a seven-year lock-in period for the BEE
partners, and the introduction of property opportunities by the BEE
partners to SA Corporate on a preferential basis. "
This is the first transaction in the listed real estate sector for WIPHOLD
and Kensani, who sought to establish a meaningful equity position in a
listed real estate investment trust in partnership with industry leaders.
Ends
6 March 2007
Date: 06/03/2007 11:01:00 Produced by the JSE SENS Department.
