A property investment and development company which invests in commercial real estate primarily in the UK and Europe, has announced its intent to seek a secondary listing on the JSE.
The listing by Ciref plc. will be renamed as Redefine International plc..
This follows a £38m (R475m) fully placed capital raising which is conditional on shareholder approval and which includes the sale by Redefine Properties of its stake in Wichford plc. As a result, Redefine will increase its shareholding in Ciref from 28,6% to 56%.
Ciref, which released its annual results to the year ending 30 September 2009, has been affected by the global banking and credit crisis. Although recording a net loss of £31,79m (R397,38m) as a result of revaluations of properties and hedges, the group increased profit from core operations by 21,9% to £6,67m (R83,38m) (2008: £5.47m or R68,38m) and paid a dividend of 1,31p (16.38c) per share (2008: 2,51p or R31.38). The dividend was declared in terms of Ciref's policy of paying 4,5% of net asset value, but this policy has now been changed and Ciref will in future distribute no less than 80% of distributable earnings.
Ciref chairman Gavin Tipper says after 27 months of declining asset prices, the IPD all property index turned positive in August 2009. "The overwhelming consensus is that in the UK the worst of the decline in asset prices has passed and positive economic growth looks set to return," he says.
Redefine joint CEO Marc Wainer says that Redefine believes that the current market conditions make the timing right to increase its shareholding in Ciref to 56%. "We have also recently increased our stake in Ciref's management company, Corovest Fund Managers, to 76% subject to South African Reserve Bank approval," he says.
Wainer says Redefine will house its current offshore holdings in Ciref, which would be renamed Redefine International, and believes that it is opportune to make further acquisitions in the current market.
"Where there are markets in distress, which is currently the case in the UK, Europe and Australia, there are opportunities for those who have a reasonable size cheque book. There are a number of exciting accretive acquisitions which are currently being investigated and the yields which we will be able to earn on our investment are superior to those than we can source in South Africa.
"In addition, we believe that in the medium term the rand will depreciate against other major currencies and further enhance earnings," he says.
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