Investec Property Fund (IPF) said yesterday it had received strong support from shareholders on its plans to internalise its entire asset management function across South Africa and Europe – currently undertaken by Investec – for some R975 million in total.
IPF directors said in a statement that based on the track record of delivery and growth over the last 11 years and in combination with the pipeline of opportunities: “The board and Investec are confident in IPF delivering on its stated strategy.”
To further align Investec’s interests with those of IPF, an earn-out mechanism based on the future growth of the IPF portfolio was proposed.
The R975m had been reduced by R125m via the introduction of an earn-out, whereby Investec would put R125m of the deferred consideration at risk in terms of an earn-out, linked to the growth in the existing assets, in excess of a minimum annual growth threshold over three years.
BUSINESS REPORT