Redefine in good position to grow for the rest of the year

JOHANNESBURG – Redefine Properties was in a good position to grow through the weak property fundamentals for the rest of the year and beyond, chief executive Andrew Konig said on Monday.

He said in a pre-close online briefing for the year ending August 31 that the pandemic had merely hastened moves that were already under way to readjust the asset platform for prevailing difficult business conditions.

The focus now was offshore in Poland, where the logistics and offices portfolios had continued without restriction through the pandemic, he said. “This reduces our risk profile, improves our liquidity position and eases our loan-to-value ratio, which has been under a lot of pressure,” he said. He said further non-core asset sales might be on the cards next year to reduce loan to value further.

The sale of Redefine’s stake in UK fund RDI Reit for R2.3 billion in June had enabled it to focus on local and East European investments. Recent changes to streamline the business included the sale of a 90 percent interest in two Australian student accommodation facilities, and its residual interest in Cromwell Property Group.

The elimination of non-recurring income came on stream through the acquisition of 100 percent of the equity value in M1 Marki from Chariot for €122.8 million (R2.48bn). Redefine owns 25 percent of Chariot.