Fountainhead Property Trust given Reit status

Fountainhead will qualify as a Reit with effect from the start of its next financial year‚ on October 1 2013. FILE PHOTO: Len van Niekerk to replace acting CEO

Fountainhead Property Trust (FPT) said on August 2 that Fountainhead’s application for Real Estate Investment Trust (Reit) status has been approved by the JSE.

Fountainhead will qualify as a Reit with effect from the start of its next financial year‚ on October 1 2013.

Fountainhead was recently the target in an escalating bidding war between Redefine and Growthpoint‚ who both looked to acquire the trust’s portfolio worth more than R10bn.

While Redefine withdrew its offer in March and Growthpoint withdrew in June‚ Growthpoint has said it is still interested in acquiring the assets.

Growthpoint withdrew after the decision by Fountainhead board’s independent committee to cease engagement‚ although Growthpoint referred a number of claims to the Financial Services Board (FSB) and the JSE‚ including that Redefine be precluded from voting its shares in a unitholder vote.

Redefine said that following an investigation into Growthpoint’s allegations‚ the JSE had confirmed “that they have found no breaches by Redefine of the JSE listings requirements”.

Growthpoint had sought a ruling in its favour which would have allowed it to reopen negotiations to acquire the trust’s assets.

In June Redefine Properties named a rated listed property analyst, Len van Niekerk to replace acting CEO‚ Alex Phakathi as Fountainhead's new chief executive officer.