Small-cap property player Wichford is considering a merger with Aim-listed South African property company Redefine International, having appointed investment bank Rothschild to conduct a strategic review of its business.
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Discussions "are at an early stage" but Redefine, a £230m company that already owns 21.7 per cent of Wichford's shares, is a serious suitor. Parent company Redefine Properties, which is listed in Johannesburg, owns a shareholding in Wichford's external property manager.
Wichford's exposure to government-occupied property means its shares suffered after the spending review. Nearly £1m of current passing rents have a lease event before April 2011, meaning renewals will have to be rubberstamped by the Treasury.
