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Investec Property Fund (IPF), which oversees R35 billion in assets, is asking shareholders to approve a name change to Burstone Group, in reference to the name of a stone used to mill grain into flour.
IPF, valued at more than R6 billion on the JSE, said further details on the name change will be given after a shareholder vote at the end of August, but said it represents a story of transformation of latent potential into value.
The proposed name, unveiled through a SENS announcement for a circular, follows the successful internalisation of the fund’s asset management functions across SA and Europe, which was previously undertaken by Investec, it said in a statement.
Burrstone, or Buhrstone, is a type of tough, fine-grained rock suitable for making millstones.
Shareholders gave their approval in May and competition approval was granted in June. Investec retains a 24% stake in the business.
"The new name reflects our vision to be a dynamic and agile fully integrated international real estate business, with a strong heritage, that has the unique ability to identify potential and unlock value for our shareholders and partners," said CEO Andrew Wooler in the statement.
"The proposed name, Burstone, is an inspiring story of transformation," he added.
"It’s about seeing the potential that lies within something and then transforming it into something of real value. We strive to deliver purposeful and authentic client experiences with agility, speed, and passion. The ability to see potential and to transform it into positive outcomes has always been at the heart of our approach, entrepreneurial mindset and strategy," said Wooler.
IPF has R35 billion in gross assets under management, as well as about R5 billion in third-party capital, and directly owns a portfolio of 79 properties in SA valued at R14.6 billion at the end of March. These assets are in the retail, industrial and office sectors, and include the Balfour Mall.
About 56% of the Fund’s asset base is comprised of foreign investments, largely an effective 83% interest in a pan-European logistics portfolio, valued at about €1.1 billion (R21.5 billion currently).
The Fund has recently entered the Australian market through its about 18.7% investment in the Templewater Australia Property Fund and its 50/50 joint venture with Irongate Australia Fund Management.
It is not only Investec-linked firm to change its name recently, with Investec's asset management business being spun out and separately listed as Ninety One in March 2020.
