Author: AIVP
Source: Victoria & Alfred Waterfront
On sale date: Thursday, 01 June 2006
Type of document: News
Topic: 5.01 - city / port planning project, 6.03 - planning policy at the regional level, 1.09 - port projects financing
Original language: English
Location: Africa : South Africa : Cape Town
Language: English, French, Spanish

The shareholders of Victoria and Alfred Waterfront (Transnet Limited (Transnet), Transnet Second Defined Benefit Fund (TSDBF), Transnet Pension Fund (TPF) and Transnet Retirement Fund (TRF) announced on the 29th May 2006 their intention to sell their majority shareholding. Candidatures may be lodged up to 21st July 2006; V&A Waterfront is one of the most highly demanded destinations in South Africa with 22 million visitors a year. The site combines high grade residential housing, a marina, retail outlets and leisure installations.

Bulelani Ngcuka, Chairman of V&A Waterfront Holdings says: "The V&A Waterfront is internationally recognised as a highly successful real estate venture at the heart of Cape Town's economy. Today signals the dawn of a new era in its history. We believe there will be considerable interest in this opportunity. It is therefore very important that the overall process of selecting the preferred bidder is beyond reproach. I am confident that we have the appropriate mechanisms to achieve this outcome.”
Ms Maria Ramos, Transnet Group Chief Executive and spokesperson for both Transnet and the V&A linked unitholders, says: “Transnet and the V&A linked unitholders have decided to exit the V&A Waterfront via a structured, transparent and equitable process. The V&A Waterfront is South Africa’s prime real asset and it is anticipated that running a dual track process will encourage potential bidders to offer a competitive price in the trade sale process.”
For the V&A’s linked unitholders, the decision to sell is in part based on a desire to increase the liquidity of their investment profile and reduce the risk to beneficiaries of being exposed to one class of asset.

For Transnet, the sale is a further step in its strategy of disposing of its non-core assets, and in line with the Group’s four point turnaround strategy. Transnet has publicly stated its intention to restructure its operations in order to become a focused and efficient freight organisation operating in the area of ports, rail and pipelines and in so doing, to release cash for the Group’s infrastructure investment program. The present strength of the Group’s balance sheet is undermined by the capital demands of the non-core operations.
Ramos adds: “We regard our 26% holding in the linked units of the V&A Waterfront as a non-core asset and its disposal for the maximum value is in line with our goal to raise cash for our infrastructure investment program and to thereby enhance returns for our stakeholders. The sale of this shareholding will ultimately help us achieve our objective of transforming Transnet into a focused freight company.”

Ramos says: “Offers received in the trade sale process will be evaluated against the potential listing of the V&A Waterfront on the main board of the JSE to determine which process will best maximise value for the V&A linked unitholders.”

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