Tsogo Sun Holdings Ltd., the largest hotel and gaming company in South Africa, is considering placing its hotel, retail and office properties in a real estate investment trust. Bloomberg News reported that the REIT would exclude the company’s casino properties, but could provide ready capital for an aggressive acquisition strategy on the gaming side.
“If this works, we could have an entire third new division which has a lot of opportunities going forward,” said Tsogo Sun CEO Marcel von Aulock. “It’s a vehicle through which we can raise money for expansion without being dilutory at the top holding structure.”
The REIT could be valued at as much as 10 billion rand (US$846 million), Bloomberg reported.
