Fortress establishes ad hoc committee in response to investor concerns
Property group Fortress has established a "special ad hoc sub-committee" which will consider the request of several institutional investors for a forensic investigation into the company. Last month, SA’s largest investment managers wrote a letter to the boards of the Resilient group of companies, demanding an independent forensic investigation led by a "top-four accounting firm" into the companies. The Resilient group of companies, which includes Fortress, Nepi Rockcastle and Greenbay Properties, are at the centre of the collapse of the listed property sector this year. These companies’ shares have been sold off in 2018, costing investors more than R120bn. At one point they made up 40% of the South African listed property sector and many index trackers and fund mangers were exposed to them. The Financial Sector Conduct Authority (FSCA) has been investigating the companies since March. Its market abuse department’s investigation is two-fold: it is studying possible insider trading an...
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