Liberty Two Degrees unit settles for manco

Posted On Monday, 28 November 2016 22:36 Published by
Rate this item
(0 votes)

Liberty will be managed by an external management company, manco, following its listing in December.

 Amelia_Beattie_CEO_of_Liberty_Two_Degrees

Liberty Two Degrees, the real estate investment trust (Reit) vehicle created by investment giant Liberty, will be managed by an external management company (manco), following its listing in December, even though this type of structure has been criticised in the listed property sector in the past.

Mancos are paid regular fees with a concern being that the management of these structures may make acquisitions for the sake of being rewarded instead of taking the long-term interests of shareholders into account.

But it would seem that Liberty Two Degrees, which will have R10bn in assets, exposing JSE investors to portions of various iconic malls such as Sandton City and Melrose Arch for the first time, has been designed to be managed by a manco on purpose. An important reason for this is to prevent the vehicle from becoming a takeover target, early in its life, according to one analyst.

Grindrod Asset Management chief investment officer Ian Anderson said while mancos were becoming less popular in SA, Liberty Two Degrees would be managed by one as it could block suitors from making acquisitive plays for the Reit.

“An external manco is not desirable but understandable in this instance,” he said.

source: Business Day

Last modified on Monday, 28 November 2016 22:52

Most Popular

Attacq Ltd and Tricolt break ground on Ellipse Waterfall

Aug 30, 2019
 13 2
Today Attacq Ltd the JSE listed REIT developing Waterfall City, and Waterfall Logistics…

Tshwane Regional Mall Grand Opening date set

Aug 31, 2019
  TSHWANE REGIONAL  MALL
24th October 2019, the long-awaited day earmarked for the grand opening of Tshwane…

Eris Property Group appoints successive CEO Barend de Loor

Aug 30, 2019
 BAREND DE LOOR
Eris Property Group has appointed a new Chief Executive Officer (CEO). Barend de Loor…

Cap Rates and Property Values - Is it time for a more significant move?

Aug 19, 2019
FNB John Loos
A few months on from the May general election, a somber mood is once again settling in in…

Redefine Properties appoints Daisy Naidoo as independent non-executive director

Aug 30, 2019
 STRATE 1
Redefine Properties appoints Daisy Naidoo as independent non-executive director.

Please publish modules in offcanvas position.