Texton Property Fund’s board and shareholders have agreed to internalise their management company as they look to better align the interests of the company’s management and investors and to be consistent with global best practice. The fund’s external manager is called Texton Property Investments. In terms of the proposed management company (Manco) internalisation, a consideration of R180m would be paid by Texton to its external manager in cash. Market commentators have argued that when companies have external management companies as well as in-house executives and staff the result could be an inefficient management structure where bosses are rewarded at the expense of shareholders. This was because the external management company and the internal staff would both be rewarded for asset management and growing the fund. Former CEO of Texton Angelique de Rauville also led Texton Property Investments. External managers can help a small fund to build its portfolio and to establish a credi...

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