Telkom could unbundle property assets worth about R24bn
Telkom will consider spinning off its vast property portfolio — potentially the equivalent of about 90% of its whole market capitalisation — as a “mega” real estate investment trust (Reit) to unlock value for shareholders, says CEO Sipho Maseko. The network operator’s Gyro subsidiary manages Telkom’s portfolio of 1,332 properties, including offices, client-service centres, residential dwellings and land parcels.
“Taking that as some kind of mega-Reit that would hold masts and towers, properties and developments is one opportunity we’re looking at,” Maseko told Business Day. “We’ve been looking at how we can unlock value because if you look at Telkom’s valuation, the property value is not reflected in our share price.” The telecommunications group's capitalisation was R27.3bn on Tuesday, making it slightly more valuable than its property assets, which had an insured value of R24bn. Telkom's Reit would have an asset base similar to that of a diversified mid-sized property comp...
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