Growthpoint seals deals worth R2.4bn
Johannesburg - Growthpoint Properties Australia
has acquired three modern office properties and a 100% pre-committed
office development for a total consideration of AU$289.5m - about R2.4bn.
"These assets provide an excellent investment opportunity and
continue to achieve Growthpoint Australia's strategic objectives of
delivering distribution growth to investors through acquisition and
diversification, targeting well-tenanted, quality, modern properties,"
said Estienne de Klerk, director of GOZ and its major security holder of
61%, the largest SA-listed property company Growthpoint Properties.
Growthpoint Australia's portfolio value has more than doubled
over the last three years, from 24 properties valued at AU$662m
in June 2009 to 40 properties worth $1.54bn - or about
R12.9bn - as a result of this transaction. The portfolio has also
diversified from a purely industrial property to a spread of 47% offices
and 53% industrial property.
The acquisitions include three office buildings in Queensland -
two in South Brisbane and a 24-level A-grade office building in the
Brisbane CBD and an office building currently under construction at Gore
Hill Technology Park in Sydney, New South Wales, which will be 48%
leased to Fox Sports (Premier Media Group) on completion in early 2013.
This development is targeting a 5-star National Australian Built
Environment Rating System rating and a 5-star Green Star
The new assets are fully let, and together represent an
initial property income yield of 8.7% and enjoy a 4.6-year weighted
average lease expiry.
"Investing in the Brisbane office market is opportune in light
of expected improved vacancy rates and effective rental growth as the
Queensland economy continues to perform well, anchored by the strong
resources sector," said Growthpoint Australia Managing Director Timothy
"We are also pleased to purchase a significant property within
the Sydney office market where opportunities to acquire newly
constructed 'new generation' properties are limited."
The acquisitions will be partially funded by a rights offer to
raise about AU$166.4m - or around R1.4bn - at an
issue price of AU$1.90 per Growthpoint Australia stapled security.
"Growthpoint South Africa will take up its full entitlement of
some AU$101.5m (about R850m) and underwrite the
remaining approximately 39%," confirmed De Klerk.
"During Growthpoint South Africa's 2011 financial year, we
received a total return of 28.6% from our investment in Growthpoint
Australia. We will continue to support its growth."
The Growthpoint Properties Australia rights offer opens on the ASX on 3 January 2012 and closes on 19 January.