Schedule of listed securities
Strategic listed investments overview
Redefine originally listed as a property fund with a hybrid investment strategy, investing in both direct properties and listed property securities. From the outset, the company sought to establish core strategic holdings in certain securities and to acquire other securities on an opportunistic basis.
Although this strategy has served a valuable purpose in ensuring growth in distributions, the board has taken the decision to narrow the focus of the hybrid model. Further investments in listed property companies will be actively pursued for strategic purposes, corporate action or on an opportunistic basis.
As is the case with the direct property portfolio, all decisions in respect of acquisitions and disposals are taken by the investment committee or by the board.
Profit on realisation of the core holdings of listed securities is not distributed as it is deemed to be capital. However, where listed securities are purchased specifically for trading purposes, profit on realisation is distributed as trading revenue. The entire listed securities portfolio is revalued quarterly based on the market value of the securities net of any distributions declared and not yet received.
Schedule of listed securities at 31 August 2009
| Number | Total units | % of | Value | |||
|---|---|---|---|---|---|---|
| Type | of units | in issue | % held | portfolio | R000 | |
| Hyprop Investments Limited | PLS | 55 323 970 | 166 113 169 | 33.30 | 83.5 | 2 345 183 |
| Sycom Property Fund | PUT | 6 530 673 | 205 107 471 | 3.18 | 4.2 | 117 552 |
| Ciref plc | Other | 21 069 405 | 73 324 751 | 28.73 | 4.6 | 129 777 |
| Wichford plc | Other | 14 600 000 | 132 762 000 | 11.00 | 2.2 | 62 116 |
| Oryx Properties Limited | PLS | 14 554 269 | 55 046 403 | 26.44 | 5.5 | 152 862 |
| Total | 100.0 | 2 807490 |
Hyprop Investments Limited (Hyprop)
Hyprop owns prime retail centres, including Canal Walk (80%), The Glen (75%), Hyde Park Shopping Centre and The Mall of Rosebank, making it one of the premier retail portfolios in terms of quality and resilience. In 2009, Redefine increased its holding in Hyprop from 29.21% to 33.3%, taking advantage of an attractive opportunity.
Redefine will continue to increase its holding when opportunities are presented. In the event that Redefine’s interest in Hyprop exceeds 35%, Redefine will be required to make an offer to all other Hyprop unitholders. In terms of a consultancy agreement, Redefine provides consultancy services to Hyprop for an initial period of 18 months from 1 January 2010 at a fee of R1,5 million per month.
Sycom Property Fund (Sycom)
Sycom is a property unit trust with a portfolio of office and retail properties situated in Johannesburg and the Western Cape. Some of its landmark assets include the Discovery building in Sandton, Woodlands Office Park in Woodmead and Somerset Mall.
Redefine has 6 530 673 Sycom units, equating to 3.18% of the units in issue. Hyprop has a right of first refusal to acquire these units should Redefine decide to sell, and the expectation is that there may be corporate action that will impact Redefine’s holding in Sycom.
CIREF Plc (Ciref)
Ciref is a Jersey registered closed ended property investment and development company. It invests in commercial real estate primarily in the United Kingdom and Europe, with a focus on retail and commercial assets. Ciref is listed on the London Stock Exchange’s AIM with a market capitalisation of approximately £40 million and total assets of more than £169 million.
During the year under review, Redefine increased its holding in Ciref from 27.6% to 28%, and the strategy is to continue increasing its offshore holdings.
Wichford Plc (Wichford)
Wichford is a property investment company listed on the London Stock Exchange, with a portfolio focused on properties occupied by Central and State Government bodies in both the UK and Continental Europe. It has a market capitalisation of £98 million. As at 30 June 2009, Wichford owned 78 properties in the UK and Continental Europe (one in France, five in Germany and one in The Netherlands) totaling 340 259m2 and valued by external valuers at £532,5 million.
Oryx properties limited (Oryx)
Oryx is a property investment company listed on the Namibian Stock Exchange that owns a premier quality retail, industrial and office property portfolio. Oryx’s property portfolio comprises 26 properties with a value of N$750 million. Its largest investment is the Mearua Mall, which is the major regional retail centre serving Windhoek. Oryx has a market capitalisation of approximately N$620 million. The investment in Oryx is owned by Ambit and was acquired by Redefine as a consequence of the merger with ApexHi.
