REDEFINE DECLARES EIGHT CENTS/UNIT MAIDEN QUARTERLY INT. DISTRIBUTION

NEWS RELEASE                                      FOC/013/2000
ISSUED ON BEHALF OF REDEFINE INCOME FUND
THURSDAY, JUNE 22, 2000

JSE-LISTED PROPERTY LOAN STOCK COMPANY REDEFINE DECLARES EIGHT CENTS/UNIT
MAIDEN QUARTERLY INTEREST DISTRIBUTION

INCOME FUND ON TRACK TO MEET 17 PERCENT RETURN FORECAST ON FULL YEAR OF
OPERATION

INTERNATIONAL RATING AGENCY FITCHIBCA AWARDS REDEFINE A+ RATING

REDEFINE INCOME FUND, THE ONLY JSE-LISTED PROPERTY LOAN STOCK COMPANY WITH A
POLICY OF QUARTERLY PAY-OUTS TO LINKED UNIT HOLDERS, TODAY DECLARED A MAIDEN
INTEREST DISTRIBUTION OF 8,5 CENTS PER UNIT.

CHAIRMAN WOLF CESMAN SAID THIS INITIAL DISTRIBUTION WAS IN LINE WITH REDEFINE'S
FORECAST OF 34 CENTS PER LINKED UNIT FOR THE FIRST 12 MONTHS OF OPERATIONS,
WHICH EQUATED TO A 17 PERCENT RETURN ON THE LISTING PRICE OF R2,00.

REDEFINE, WHICH IS MANAGED BY CORPCAPITAL BANK, LISTED ON FEBRUARY 23, 2000, AS
THE JSE'S FIRST 'HYBRID' LOAN STOCK COMPANY. ABOUT 50 PERCENT OF ITS

R1,1-BILLION ASSET BASE IS HELD IN A PORTFOLIO OF 57 DIRECTLY-OWNED PROPERTIES,
AND THE BALANCE IN A 'FUND OF FUND' PORTFOLIO OF 14 SELECTED LISTED PROPERTY
UNIT TRUSTS AND PROPERTY LOAN STOCK COMPANIES.

CESMAN ALSO ANNOUNCED THAT REDEFINE HAD BECOME THE FIRST PROPERTY LOAN STOCK
COMPANY TO SEEK AN INDEPENDENT INVESTMENT EVALUATION.

"WE ARE DELIGHTED THAT U S-BASED INTERNATIONAL RATING AGENCY FITCHIBCA HAS
AWARDED REDEFINE AN A+ GRADE RATING. WE BELIEVE THIS RATING WILL AFFORD
INVESTORS A COMFORT LEVEL AS TO THE QUALITY OF OUR EARNINGS AND ASSETS. IT IS
TO BE HOPED SOME OF THE OTHER LISTED FUNDS WILL ALSO APPLY FOR INVESTMENT
EVALUATIONS. THIS WOULD BE TO THE BENEFIT OF THE SECTOR AS A WHOLE IF THEY WERE
TO DO SO."

HE ANNOUNCED THAT PETER PENHALL, WHO HAS EXTENSIVE PROPERTY MANAGEMENT
EXPERIENCE, WOULD BECOME THE FUND'S CHIEF EXECUTIVE OFFICER FROM JULY 3, AN
APPOINTMENT THAT WOULD FURTHER ENHANCE THE STRENGTH OF REDEFINE'S PROPERTY
MANAGEMENT TEAM.

REDFINE HAD USED THE FIRST THREE MONTHS OF OPERATION TO 'BED DOWN' THE PROPERTY
PORTFOLIOS. SINCE LISTING, REDEFINE HAD ACQUIRED, AT A TOTAL COST OF

R24-MILLION, A FURTHER THREE PROPERTIES DELIVERING YIELDS OF 16 PERCENT. THE
ACQUISITION OF TWO ADDITIONAL PROPERTIES IS BEING NEGOTIATED.

REDEFINE ALSO HAD SOLD ONE PROPERTY PURCHASED FOR R6,7-MILLION FOR
R7,5-MILLION.

CESMAN SAID: "PROPERTIES BUNDLED WITH OUR PORTFOLIO ACQUISITIONS THAT DO NOT
FIT OUR INVESTMENT STRATEGY EVENTUALLY WILL BE SOLD. THIS EVALUATION PROCESS IS
ALMOST COMPLETE."

CESMAN SAID: "WE FEEL THE PRICE OF UNITS HAS HELD UP WELL SINCE LISTING, GIVEN
MARKET CONDITIONS AND SENTIMENT, AND THE FACT MANY VENDORS HAVE SOLD UNITS THEY
ACQUIRED AS PART OF OUR PROPERTY ACQUISITION TRANSACTIONS. WHAT IS ENCOURAGING
IS THE NUMBER OF FINANCIAL INSTITUTIONS WHICH HAVE BECOME SIGNIFICANT BUYERS.
"I AM SURE THERE WILL BE A RE-RATING OF THE UNIT PRICE ONCE THE MARKET
UNDERSTANDS THE SIGNIFICANCE OF REDEFINE AS AN INCOME FUND WITH AN A+

INVESTMENT GRADE RATING, PAYING QUARTERLY. IN OUR VIEW, REDEFINE REPRESENTS AN
EXCELLENT ENTRY LEVEL TO SAFE AND RELIABLE EXPOSURE TO PROPERTY."

CESMAN ALSO WELCOMED NEW AND FORTHCOMING PLS LISTINGS.

"THE PROPERTY SECTOR CURRENTLY REPRESENTS LESS THAN ONE PERCENT OF THE JSE'S
TOTAL MARKET CAPITALISATION, HOWEVER, AS EXISTING PLS COMPANIES BUILD UP THEIR
ASSETS BASE AND MORE LISTINGS COME TO THE MARKET, WE BELIEVE THIS WILL MOVE THE
SECTOR CLOSER TO THE AUSTRALIAN MODEL, WHERE THE PROPERTY SECTOR NOW REPRESENTS
IN EXCESS OF FOUR PERCENT OF TOTAL MARKET CAPITALISATION," CESMAN SAID.
ENDS