Approval means a combined business

By Eddyson Lugangwa Posted 05 April 2006 @ 06:02 am EET     Print     Reprint     E-Mail     Comments

Nairobi (IBTimes.com) - Implementation of the merger of Old Mutual Properties and the Marriott property business is being targeted for end June following the unconditional approval of the transaction by the Competition Tribunal, Ben Kodisang, managing director of Old Mutual Properties, said yesterday.

Approval means a combined business with assets under management of R32 billion will emerge under the banner of the Old Mutual Property Group, says Kodisang.

"Our focus is on property asset gathering, asset management and providing services to property owners and managers. Our aim is an enhanced offering to clients and tenants and to grow assets under management to R100 billion over the next five years through access to new markets and to funds that can buy our development and acquisition activities. We want to create large, liquid listed funds.

"In combining the businesses, the group will be deploying all employees across divisions for listed securities fund management; listed companies and institutional property asset management; international; and third party property service businesses. Organising the divisions is now proceeding according to a defined plan aimed at achieving a smooth transition. "

He says that, under listed securities fund management, Marriott Asset Management and The Income Specialists will remain as a stand-alone business within the group. The division's activities will include management of Marriott unit trusts and the Old Mutual SA Quoted Property Unit Trust.

A second division will manage the listed companies - Martprop, SA Retail, Ambit and Oryx - and a third will manage the Old Mutual institutional portfolios.

The international division will continue the drive to provide development, property management and advisory services beyond the substantial involvement in Saudi Arabia and India where joint ventures are in operation.

Third party property service businesses include property management, valuations and facilities management, the Office Suites Company, a provider of executive office services, and operations focused on the retail property industry. These are Point of Presence Communications, specialists in mall advertising and Lifestyle Communications, which provides marketing and promotional services for retail centres.

Simon Pearse, chief executive of Marriott, says Marriott will gain from the strength of Old Mutual's retail distribution network and have greater exposure to the retirement funding market through Old Mutual's corporate distribution capability.