Fund gets not to stop dual unit

THE Takeover Regulation Panel has given Hospitality Property Fund the go-ahead to restructure and do away with its controversial dual unit ownership structure.

The Real Estate Investment Trust (Reit) offered two unit structures designed to cater for investors with different risk profiles.

While Hospitality’s A unit holders have been receiving a guaranteed distribution, its B unit holders are unhappy about their returns, which have fallen recently. Analysts say a single-unit structure may attract more investors.

Hotel owner Tsogo Sun is looking at injecting assets into Hospitality in exchange for significant ownership.

“They are sorting themselves out and could become a more attractive, better run investment with a strong portfolio of assets,” Ma’alot Investments director Maurice Shapiro said.

The fund said in a statement yesterday that the Companies and Intellectual Property Commission had confirmed that it had accepted and placed on file the relevant documents required to effect the capital restructure.

andersona@bdlive.co.za

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