Mancos are paid regular fees with a concern being that the management of these structures may make acquisitions for the sake of being rewarded instead of taking the long-term interests of shareholders into account.
But it would seem that Liberty Two Degrees, which will have R10bn in assets, exposing JSE investors to portions of various iconic malls such as Sandton City and Melrose Arch for the first time, has been designed to be managed by a manco on purpose. An important reason for this is to prevent the vehicle from becoming a takeover target, early in its life, according to one analyst.
Grindrod Asset Management chief investment officer Ian Anderson said while mancos were becoming less popular in SA, Liberty Two Degrees would be managed by one as it could block suitors from making acquisitive plays for the Reit.
"An external manco is not desirable but understandable in this instance," he said.
Source: Business Day
For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.
We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.
Go to: http://www.inet.co.za
