Emira Property Fund has confirmed that Redefine Properties has purchased about 11 percent of Emira’s Participatory Interests (PIs).
The PIs were purchased from certain institutional investors in exchange for Redefine shares. Redefine has therefore become one of Emira’s larger PI holders.
Emira chief executive, James Templeton, says: “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.”
He says Emira has shown a strong and sustained turnaround in the past three years and is well positioned for future performance. This has created a keener demand for Emira PIs from a variety of investors in the market, as is evidenced by the rise in Emira’s PI price of an effective 12.7 percent since results were released in mid-August.
“Redefine has advised that it likes Emira’s prospects and its investment does not constitute a hostile bid,” says Templeton.
Confirming its successful turnaround, Emira met or exceeded all its targets for its financial year ended June 2014, most significant of which was growth in distributions per PI of 7.5 percent, but also included growth through organic and acquisitive means, with acquisitions of R1.6 billion. It also continued to advance its operational goals, with vacancies declining to 4.5 percent and tenant retention rising to 80 percent.
“We telegraphed our repositioning clearly to the market and will continue implementing our strategy to add value to all our investors,” says Templeton. “Emira will remain focused on excellent operational performance and growing its diversified portfolio of office, retail and industrial properties with high-quality assets.”
Emira Property Fund is a JSE-listed REIT. It is invested in a diversified portfolio of 141 properties valued at R10.8bn. Emira is also internationally diversified through its direct interest in ASX-listed Growthpoint Properties Australia (GOZ), valued at R666m at June 30, with total assets now at R11.6bn.