Synergy Income Fund Ltd. will start implementing on Dec. 22 its position as a high-yield, high-growth fund with an internally managed real estate portfolio in South Africa.
The terms of agreement with Vukile Property Fund Ltd. and Arrowhead Properties Ltd. include an asset exchange agreement between Vukile and Synergy, and a cost sharing agreement between Synergy, Vukile and Arrowhead, among other conditions. Plans for the formation of the fund were said to have been taking shape as early as in March this year.
VAM consideration shares and Cumulative Properties Ltd. consideration shares are being issued to Vukile and the shareholders of Cumulative on Dec. 22, respectively, and the shares are getting listed on the Johannesburg bourse on the same day, according to a news release.
Effective, Jan. 9, 2017, Synergy will cease trading in the retail REITs sector and start trading in the diversified REITs sector. Additionally, Synergy will begin trading under its new name, Gemgrow Properties Ltd., from Jan. 4, 2017. Synergy's current board of directors will also resign.
The reconstituted board of directors of the company will meet in January 2017 to consider candidates for the position of Synergy's CEO. Gerald Leissner, who was due to take up the position, died Dec. 16.