Johannesburg - Pivotal, the listed property fund, has agreed in principle to co-invest with listed Redefine Properties in Echo Prime Properties, which indirectly owns a portfolio of prime real estate assets throughout Poland.
Pivotal said on Friday that in terms of this agreement it would acquire from Redefine the number of shares in Echo equivalent to about 6 percent of Echo’s issued share capital for e30 million (about R512m).
This follows Redefine last month concluding an agreement to acquire 75 percent plus one share of the issued share capital of Echo. Redefine indicated at the time that it intended to reduce its shareholding in Echo to about 50 percent through the immediate on-sale of about 25 percent of Echo’s shares to a consortium of selected co-investors.
Pivotal said the co-investment transaction was in keeping with its strategy of investing up to 15 percent of its assets in mature emerging markets.
It said the co-investment transaction also offered participation in a substantial development pipeline with a value on completion in excess of e500m following Echo’s right to share in the profit derived from the sale of certain assets currently being developed by subsidiaries of Echo Investment, the current shareholder of Echo, and for which Echo Prime Properties had a right of first offer to acquire.
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