PROPERTY: Redefining The Fountainhead
Recent Western Cape Business News
REAL Estate Group Fountainhead Property Trust had just put the final coat of paint on its extensively renovated flagship retail property, the Blue Route Mall in Tokai when a large predator swooped.
Only days after the new look Blue Route Mall opened (March 29) property giant Redefine clinched an agreement with Standard Bank Properties and Liberty Holdings to acquire for R660 million the two entities that make up the Fountainhead management company.
The acquisition of the Fountainhead Manco triggered an offer by Redefine to acquire all the assets of Fountainhead in a share swop deal involving the issue of units in Redefine and Hyprop (which owns the Canal Walk shopping centre at Century City).
Redefine’s advance has already been slammed as opportunistic by certain Fountainhead shareholders – especially with the revamped Blue Route having just started to trade (opening 11 days ahead of schedule).
Fountainhead has sunk some R850 million into the Blue Route at a 5% incremental yield.
The new mall is 56 000 sq m, and the largest redevelopment Fountainhead has ever undertaken.
At first glance Redefine might be eyeing a long-term bargain.
Fountainhead reported that at opening the Blue Route was 99% let – which speaks volumes for its intention to dominate Cape Town’s Southern Peninsula retail market.
Fountainhead CEO Anton Raubenheimer recently reported that the mall was “trading well with both tenant and shopper feedback being extremely positive”.
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