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Octodec, Premium merger clears final hurdle

Octodec, Premium merger clears final hurdle

Photo by Jeffrey Wapnick

4th September 2014

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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The proposed tie-up between JSE-listed real estate investment trusts Octodec and Premium would become effective September 1 after securing the go-ahead from the Competition Tribunal.

Premium and unlisted property ownership and development vehicle IPS Investments – in which Premium and Octodec each held a 50% share – would now become wholly owned subsidiaries of Octodec, attracting combined market capitalisation in excess of R5-billion, with 325 properties valued at R10-billion.

Octodec and Premium chairperson Sharon Wapnick said Octodec would attract interest from a wider group of investors, including tracker funds and international investors, and would be able to obtain “more advantageous” funding rates and an improved credit rating.

“We are in a unique position in that all three portfolios are managed by City Property Administration, making this merger a seamless transition,” added Octodec and Premium MD Jeffrey Wapnick.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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