Redefine International aims for UK Reit status from December 3

Redefine International plc (RDF)‚ which is dual listed on the London and Johannesburg Stock Exchanges‚ says it intends converting to a UK-Reit (real estate investment trust) on December 3.

By bringing its management in-house‚ Redefine International would unlock the next stage of its corporate restructuring‚ culminating in a conversion to UK-Reit status. The transaction‚ which was subject to both South African Reserve Bank and shareholder approval‚ is expected to be completed on December 3 2013‚ the company said.

Mike Watters‚ CEO of Redefine International Group‚ said: “We’re pleased to have reached another important milestone in our stated objective of simplifying the corporate structure. Our proposed entry to the UK-Reit regime will provide further tax efficiencies to support our ongoing focus on income generation.

“We are particularly pleased to have agreed the terms of the internalisation which assures the continued management of Redefine International’s assets by a high-quality management team who have been instrumental in achieving substantial progress across the portfolio in the last few years‚” Watters said.

Shareholders will vote on electing UK-Reit status for Redefine International on November 29 2013 at an extraordinary general meeting.

They will also be asked to approve several proposals that satisfy the requirements of the UK-Reit legislation‚ including the agreement to internalise its management function and changing its tax residency to become a UK tax resident‚ as well as appointing Andrew Rowell to the board as chief financial officer.

Redefine International’s management internalisation proposal‚ if passed‚ will bring its external property advice and management function with the group‚ with Watters as CEO. This will take place by Redefine International acquiring the entire issued share capital of Redefine International Fund Managers Limited in consideration of an issue of 79-million new Redefine International ordinary shares.

The Reit regime is the preferred structure for both UK and international real estate investors. “It will assist Redefine International to gain access to a broader range of investors and cement its place among the elite group of UK midcap stocks‚” he said.

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