Redefine International P.L.C., which has a primary listing on the London Stock Exchange and a secondary listing on the Johannesburg Stock Exchange, announced today that it will commence trade as a UK-REIT on both bourses from 4 December 2013.
Last week, Redefine International shareholders approved its conversation to a UK-REIT and yesterday the South African Reserve Bank granted approval for Redefine Properties Limited to sell its interest in the management company to Redefine International. This is the final approval needed to internalise its management function, a condition for UK-REIT status.
CEO, Mike Watters, confirms that Redefine International has now taken all the necessary actions to complete the company’s changeover to a UK-REIT. As part of the conversion, CFO, Andrew Rowell has been appointed as an Executive Director of Redefine International from today.
Watters comments: “Simplifying our corporate structure was an important objective for Redefine International, and now that it is complete many benefits for the company, its management and our investors will be unlocked. We’re delighted that, by the end of this week, we will begin an exciting new chapter as a premium listed UK-REIT – the gold plated international investment benchmark for property investment companies.”
It will assist Redefine International to gain access to a broader range of investors and cement its place among the elite group of UK midcap stocks.
Internalising the management function ensures the continuation of management from the high-quality team that guided Redefine International to this important point. It will reduce ongoing administrative costs and be more efficient in the longer term given the anticipated growth in its portfolio value.
“For our shareholders, the transaction will be significantly earnings enhancing in the medium term,” says Watters.