Redefine Income Fund - News Release

Redefine Income Fund - News Release                                             
R300-million acquisitions by redefine brings Sanlam on board as stakeholder     
and establishes strong presence in western cape property market                 
Redefine Income Fund, the listed property loan stock (PLS) company, this        
week announced two transactions totalling R300-million which boost the value    
of its hybrid asset base of listed securities and directly-owned properties     
to R1,8-billion.                                                                
In the first, Redefine (through subsidiary Outward Investments Limited),        
acquired from Sanlam Investment Management (Proprietary) Limited, 36,5-         
million S A Retail Limited linked units for R164-million, half settled in       
cash and half with 36,5-million Redefine linked units to be issued at R2,25     
per linked unit.                                                                
Sanlam is the first major financial institution since Redefine was listed       
just over two years ago to sell stock held in another listed property           
company to become invested in Redefine, seemingly attracted by the Fund`s       
hybrid investment model, continued earnings delivery, and an impressive         
level of liquidity (tradability of linked units).                               
Through this transaction, Sanlam becomes a significant institutional            
shareholder in Redefine with a stake of 11,2 percent.                           
In the second transaction, Redefine has established a strong presence in the    
Western Cape through the acquisition from Solomon Brothers Property Holdings    
(Pty) Limited of a portfolio of six Cape Town properties as well as 20-         
million `A`-Prop (Arnold Property Fund) linked units for a total                
consideration of R133-million. This comprised R80-million in cash and an        
issue of 24,65-million Redefine linked units at R2,15 per linked unit.          
Solomon Brothers will be responsible for the asset management of Redefine`s     
Western Cape property portfolio. Directors David and Jeffrey Solomon join       
the Redefine board, and bring with them a wealth of local property market       
knowledge.                                                                      
Redefine CEO Peter Penhall said neither transaction initially would             
materially enhance or dilute Redefine`s headline earnings. However, it is       
anticipated that there will be a minor improvement in net asset value in the    
short term and above average growth in the medium term.                         
"In both deals, we have taken advantage of rapidly changing market forces       
operating in both the listed property sector and the physical property          
market, and the acquisition opportunities that these present to add value       
and to grow the asset base of Redefine Income Fund.                             
"We now have substantial investments in two counters new to Redefine - S A      
Retail and `A`-Prop.                                                            
"Both ranked high in our analysis of listed securities in which we sought to    
take positions, and both are well placed to offer growth.                       
"They have been acquired at a cost below the initial price at which they        
were listed last year and they add significantly to core listed securities      
in which Redefine is invested."                                                 
Redefine`s other listed investment securities include prominent counters        
such as HyProp, Marriott (Martprop), GrayProp, Growthpoint, Sycom and           
ApexHi.                                                                         
Penhall said SA Retail, which specialised in convenience retail properties,     
and was managed by the Marriott Group, represented an excellent opportunity     
of adding value to the portfolio as a result of Marriott`s national             
representation and coverage.                                                    
On the Solomon transaction, Penhall said: "We have always seen the Western      
Cape property market as an area offering value. The strategic alliance with     
Solomon Brothers opens the door to opportunities in expanding our physical      
presence and further property acquisitions.                                     
"The properties we have acquired, all located in Cape Town`s greater CBD,       
have been extensively renovated and represent superb quality relative to        
anticipated yield. The rentals are under-pinned by national and government      
tenants on reasonably long leases.                                              
"Solomon Brothers is a well-known property development and investment           
institution in the Cape. The principals are already adding value in             
assessing third party proposals so that we can make informed decisions on       
acquisitions, and the knowledge and experience brought to our board in          
growing our Western Cape asset base will be invaluable," Penhall said.          
ends                                                                            
Date: 31/05/2002 02:38:37 PM Produced by the SENS Department