Struggling Texton needs help from board to get out of its mess
The CEO says the property fund needs an injection of capital to make better investments
Marius Muller, the fifth CEO to lead Texton Property Fund since its formation in 2014, says the group needs its board to give it capital to bring an end to its struggles, which have seen its share price more than halve and its dividends plummet. Muller said he had spent 100 days in his new role trying to adapt Texton’s strategy and improve its operational metrics, but for the real estate investment trust (Reit) to succeed over the long term it needs help. “Right now our focus is on getting our vacancies and debt levels down and selling our tail assets, which are worth about R121.6m. This will place Texton into a healthier position for the short term but we need a bigger intervention to get to the next level. This would include the board taking action and raising capital,” he said. Texton could then invest more in the UK where there may be acquisition opportunities, while uncertainty around the Brexit process weighs on the values of commercial property, he said. Texton, which owns a ...
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