Redefine to sell properties

Redefine Properties, which since its merger with Apex-Hi and Madison Property Fund Managers, has become one of the top two JSE listed property owning companies in South Africa, is embarking on a move that will reduce the number of their properties currently (over 400) while at the same time raising their average value from ±R40 million to R100 million. 

What is more, according to Redefine director, Mike Flax, who has been given control of the new strategy, they should complete this exercise within three years.

Redefine, he says, will dispose of some 40% of their portfolio - but in value terms this will represent less than 20% of the portfolio. These properties, says Flax, are often multi-tenanted and many lack the potential to be transformed.

Concurrent with implementing this process, Redefine will seek to acquire new blue-chip higher profile stock and will continue with their ongoing programme of refurbishing, upgrading or extending current stock.

One of the big advantages to the new policy, says Flax, is that it will enable Redefine's asset managers to give more time and better service to the properties and tenants that they do manage.

Redefine have recruited Justin Roome, who has recently returned to South Africa from a high-profile USA West Coast investment brokerage, to help Flax implement the new policy.  Grant Abrahams, a Redefine Fund manager, is also being moved to the new team.

Flax said that the strategy will help Redefine to continue to achieve above-average linked unit distributions while enhancing the quality of its large and diversified portfolio.

Property brokers throughout SA are being contacted and will be supplied with the relevant data regarding properties for sale.  Flax has stressed that, although these properties are at the lower end of Redefine's portfolio, most have given satisfactory returns over extended periods and will represent excellent value for the right buyers.  Brokers are also being encouraged to approach Redefine about potential acquisitions.

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