Acucap-Sycom reach agreement on merger

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Once the acquisition of Sycom Property Fund has been implemented, this will put Acucap in a strong position as the seventh-largest Reit says Alternative Real Estate fund manager Maurice Shapiro. Once the acquisition of Sycom Property Fund has been implemented, this will put Acucap in a strong position as the seventh-largest Reit says Alternative Real Estate fund manager Maurice Shapiro.

JSE-listed property fund Acucap Properties and Sycom Property Fund have proposed a merger of the companies that would create a business worth about R16 billion.

Acucap Properties on Thursday said it would buy the units of Sycom Property Fund, whose portfolio is managed by Acucap.

The biggest merger in the industry for more than a year is expected to bring liquidity to investors desperate for it.

The merged entity will be one of only a few property groups with assets worth more than R10bn.

Real-estate investment trust (Reit) legislation, which removes capital gains tax on listed property transactions, has made mergers more viable, and this acquisition had been expected.

"The acquisition has been expected by the industry for some time," Alternative Real Estate fund manager Maurice Shapiro said.

"Acucap has been the owner of SPFM, the manager of Sycom, and has been intimately involved in the management of the properties. We see this as a first step to improve liquidity, reduce admin inefficiencies and create a larger, more diverse property company.

Mr Shapiro added: "Once the acquisition has been implemented, we believe this will put Acucap in a strong position as the seventh-largest Reit to grow the company and further enhance shareholder value."

He described the management team as "highly skilled with decades of experience. Their approach has been conservative and focused on core property growth and property management. These skills will serve investors well in the current volatile market environment."


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