Redefine plans ahead for Fountainhead as Growthpoint's engagement terminated

Redefine Properties welcomes the termination, announced today, of the decision by Fountainhead’s independent committee to terminate its engagement with Growthpoint following Growthpoint’s proposal to acquire Fountainhead’s assets.

Marc Wainer, Redefine CEO commented: "We are pleased that the Fountainhead independent committee has decided to terminate discussions with Growthpoint ending an extended period of uncertainty for Fountainhead unitholder.

Wainer said Redefine has number of plans for Fountainhead, including enhanced asset management proposals and a number of asset restructurings and projects.

"We are determined to add value for unitholders through these efforts and will be meeting with them over the course of the next few weeks to outline our plans in more detail. I would also like to thank those unitholders who expressed their confidence in our ability to extract further value from the portfolio by choosing to remain invested in Fountainhead," said Wainer.

In March 2012, Redefine announced its acquisition of the Fountainhead Manco, at which time it also announced its intention to acquire the assets of Fountainhead, with the necessary unitholder approval. Failing this, Redefine’s intention was to continue with the management and administration of Fountainhead through the Fountainhead Manco, and to participate in the expected value unlocked through the focused management of Fountainhead’s portfolio.

Redefine always envisaged that, in these circumstances, it would obtain a considerable direct holding in Fountainhead, which would further align interests between Redefine and Fountainhead unitholders. To this extent Redefine now holds 45.6% of Fountainhead’s issued linked units.

"Whilst we would have preferred to have acquired all the assets in Fountainhead, we are content to have a major stake which will ensure alignment of interests between Redefine and Fountainhead unitholders.

"Given the protracted delays and the increasingly negative impact it had on staff, tenants and the portfolio’s growth, we felt withdrawing our offer was in the best interests of all unitholders. This allows Fountainhead to move forward and we will continue our focus on the asset management and project plans which we have already identified to add value and maximise distributions for Fountainhead unitholders in future," Wainer concluded.