Redefine Properties has acquired a further 6 356 105 units in Hyprop, boosting its stake in the retail focused fund from 29,5% to 33,3%, valued at about R2,34-billion at current prices.
Joint CEO Marc Wainer says that Redefine took the opportunity to increase its stake in Hyprop at an attractive price which furthers Redefine’s exposure to Hyprop’s assets. “Redefine’s strategy in relation to Hyprop is to increase its holding when opportunities at the right price are presented. In the event that Redefine’s interest in Hyprop goes beyond 35% an offer would be made to all other Hyprop unit holders,” he says.
Redefine also plays a role in Hyprop following the merger with Madison, which holds the asset and property management contract for Hyprop. Subject to Hyprop unit holder approval, agreement has been reached in principle in terms of which Redefine will provide consultancy services to Hyprop for an initial period of one year from 1 January 2010 at a fee of R18-million.
This ensures that the expertise and value added to the Hyprop portfolio by Wainer and joint CEO Wolf Cesman is retained by Hyprop, which in turn will benefit Redefine not only in fees, but also as the major unit holder.
