The second largest real estate company of South Africa, Redefine Properties Inc., is planning to sell off its shareholdings in Hyprop Investment Ltd by September. The decision was reached after the company had become the majority shareholder in a rival company.
According to Redefine, the shares in Hyprop would be used as 'currency for an acquisition' or would just sell them off in the market. This was confirmed by CEO Marc Wrainer during a phone interview. He said that the divestment would commence by next fiscal year or by September 1, 2013. This is also the date that Redefine converts itself into a real estate investment trust.
The Hyprop stake is at 11.42%, according to Bloomberg compiled data and is said to be worth a total of 1.94 billion rand or US$190 million. The shares were trading 3.6% lower than previous levels, reaching a low of 70 rand by mid day trading in the Johannesburg bourse. The shares of Redefine on the other hand traded 5.8% lower at 9.31 rand per share.
The soon to be REIT Redefine is based out of Johannesburg and has steadily reduced its shareholdings from a high of 30%. The sale of part of the stake helped the firm purchase 46% of Fountainhead Property Trust worth 5 billion rand.
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