Fountainhead To Dispose Of 27 Properties

Fountainhead Property Trust, which is managed and 66% owned by Redefine Properties, this week released 27 of its relatively smaller properties to the market.

The disposals, which represent a major step forward in Fountainhead’s strategy to focus on larger core assets, are among the most anticipated in the market. They include office and industrial properties in the greater Johannesburg and Midrand area, as well as one small retail asset.

Fountainhead CEO, Len van Niekerk, comments: “These disposals are another important step in our strategy to concentrate our efforts on our core portfolio of larger property assets.”

He adds: “Once these disposals have been completed, together with other properties held for sale, Fountainhead would have effectively halved the number of properties in its portfolio from the current number of 64. Yet, the disposal properties represent less than 5% of the value of the Fountainhead’s property portfolio.”

Fountainhead’s diversified portfolio of properties is currently valued at R11.8 billion, with 75% of its properties by value being well-established metropolitan shopping centres.

Van Niekerk explains that, because of the large number of properties involved in the disposal, and broad market interest, Fountainhead is applying an innovative process to dispose of these properties in an efficient, effective and transparent way.

“We’re using cutting edge technology to manage multiple offers optimally,” explains van Niekerk, who clarifies that the disposals will not take the form of an online auction. “What makes Fountainhead’s disposal process different is that buyers will be able to access all information, including the due diligence information online. They will also be able to submit offers online.”

This information is available at www.quoinonline.co.za.

Fountainhead is using the Quoin Online system to ensure all prospective buyers have access to the same information which will allow them to make informed offers from the comfort of their computers.

Director at Quoin Online, Wayne van der Vent, is no stranger to property transactions having headed up and expanded the government’s direct property investment portfolio held through the PIC to R50 billion. Because the technology is locally developed, it has incorporated the idiosyncrasies of the South African property market.

Van der Vent says: “The online methodology allows buyers from across South Africa to participate and opens the market nationally and globally.”

Van Niekerk adds: “Market interest in the properties has been keen and we expect to get a great result from this initiative both in terms of pricing as well as a relatively smooth disposal process.”