Almot Maqolo, Staff Writer 
BRIDGEFORT Capital (Bridgefort) says it is working on a Real Estate Investment Trust (REIT) to manage its assets.
This comes as the company continues to pursue transactions to broaden its investment portfolio.
“Whilst a transaction is pursued, the Class B portfolio comprises an effective 50,1 percent of a stand registered in the name of MedTech Distribution. A REIT is being worked on to house this and other properties,” Bridgefort said in a trading update for the third quarter ended September 30, 2023.
“This property was last valued at US$200 000 in 2021 giving the Bridgefort Class B Preferred shares an underlying asset value of US$102 000 or US$0,08 per share.”
REITs are gaining traction as an investment class that can provide stable returns even amid challenges such as low occupancy rates in major office buildings.
Of the seven registered REITS, only two, including the Revitus REIT, have been listed on the local bourse.
MedTech changed its name to Bridgefort Capital after its shareholders in November 2021 approved the health and hygiene products manufacturer’s restructure into a private equity investment company.
On the other hand, Bridgefort is finalising the purchase of financial services and fintech businesses mostly in South Africa from Diaspora Kapita Proprietary and subsequently list on the Victoria Falls Stock Exchange (VFEX).
Diaspora Kapita is an investment holding with investments in South Africa and Zimbabwe.
The company has investments in financial services, agriculture, mining, contracting and building materials supply.
“The envisaged transaction involves Class A Preferred Shares and is likely to also include the disposal of the company’s interest in the current underlying asset, being MedTech, as well as a simultaneous transfer of the listing to the VFEX,” Bridgefort said in a cautionary statement to Class A Preferred shareholders.
“If the transaction is successfully concluded, it may have a material effect on the price of the company’s securities.
“Accordingly, Class A Preferred shareholders are advised to exercise caution when dealing in the securities until a full announcement is made.”
Bridgefort’s third quarter sales volumes increased by 45 percent over the prior period in 2022, although on a quarterly year-to-date basis, volumes are down by 17 percent.
Total revenue for management reporting in US dollars increased from 3,3 million to 3,7 million — an increase of about 14 percent on a third quarter year-to-date basis.
“The difference between volume and US$ turnover performance is attributable to a significant change in product mix with increased Satiskin sales and reduced petroleum jelly sales,” the company said.
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