Safari and Fairvest push ahead with merger plans
The property companies say a deal will ‘unlock enhanced efficiencies’ in the management of their property portfolios
Safari Investments, which invests in shopping centres in rural areas and small towns, will buy out Fairvest Property Holdings in a share-swap deal worth R3.5bn, the landlords said on Tuesday. The two had previously outlined plans for a “friendly merger”.
The proposed tie-up will create a company with R6bn worth of assets and adds impetus to consolidation in the local real-estate market, which lost more than R120bn of its value in 2018 due to a sell-off in shares amid governance concerns, especially around the Resilient stable of property companies.