Redefine Properties makes 'significant' investment in Emira

Emira Property Fund CEO, James Templeton comments: “We welcome Redefine Properties as a PI holder and we are confident that it, like all our other PI holders, will be well rewarded through its investment in Emira.”

Redefine Properties has made an investment in Emira Property Fund by acquiring approximately 11% of its Participatory Interests (PIs) — a move which has made Redefine become one of Emira’s larger PI holders.

Emira on Monday confirmed the PIs were purchased from certain institutional investors in exchange for Redefine shares.

Redefine chairman Marc Wainer said that the purchase of the participatory units, worth about R880m, was strategic. "It could become a takeover target in the future so what we have here is a strategic stake. We would have liked more than 11% but it’s a start."

Emira Property Fund is a JSE-listed REIT. It is invested in a diversified portfolio of 141 properties valued at R10.8 billion. Emira is also internationally diversified through its direct interest in ASX-listed Growthpoint Properties Australia (GOZ), valued at R666 million at 30 June 2014, with total assets now at R11.6 billion.

James Templeton, CEO of Emira, comments: “We welcome Redefine as a PI holder and we are confident that it, like all our other PI holders, will be well rewarded through its investment in Emira.”

Templeton adds: “Redefine has advised us that it likes Emira’s prospects and its investment does not constitute a hostile bid.”

Emira met all its targets for its financial year ended June 2014, most significant of which was growth in distributions per PI of 7,5%, but also included growth through organic and acquisitive means, with acquisitions of R1,6 billion being concluded.

“We telegraphed our repositioning clearly to the market and will continue implementing our strategy to add value to all our investors,” says Templeton.

Redefine is the JSE’s second-largest real estate investment trust (Reit) with a market value of R33bn. It controls a diversified portfolio of property assets in excess ofR44.5 billion.