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Cape Town - Growthpoint Properties announced on Wednesday that it will acquire Abseq Properties, which owns and manages a portfolio of 17 high-quality office properties in northern Johannesburg and Woodmead.
Comprising 79 971m² of predominantly A-grade offices, Growthpoint is acquiring the properties at an average forward yield of 8.74% and will settle the purchase consideration of R1.3bn in shares and cash.
“This transaction is yield enhancing for Growthpoint and advances our strategy to provide our shareholders with sustainable growth in distributable income and long-term capital growth,” said Norbert Sasse, CEO of Growthpoint Properties.
“This is a sizeable portfolio of quality properties in locations which are strategic and complement Growthpoint’s existing portfolio."
The deal increases Growthpoint’s exposure to the Woodmead office node, where over half of the portfolio space is located.
To keep the skill, expertise and property administration of the portfolio, the acquisition also includes the Equity Estates property management team responsible for the Abseq properties, ensuring continuity of property management.
The transaction is subject to various conditions, including approval by the competition authorities and is expected to be effective in the first quarter of 2014.
Growthpoint owns and manages 393 properties in South Africa, 44 properties in Australia through its investment in GOZ and it owns a 50% interest in the properties at V&A Waterfront in Cape Town.
This acquisition will take the value of Growthpoint’s consolidated tangible assets over R64bn.
- Fin24
Comprising 79 971m² of predominantly A-grade offices, Growthpoint is acquiring the properties at an average forward yield of 8.74% and will settle the purchase consideration of R1.3bn in shares and cash.
“This transaction is yield enhancing for Growthpoint and advances our strategy to provide our shareholders with sustainable growth in distributable income and long-term capital growth,” said Norbert Sasse, CEO of Growthpoint Properties.
“This is a sizeable portfolio of quality properties in locations which are strategic and complement Growthpoint’s existing portfolio."
The deal increases Growthpoint’s exposure to the Woodmead office node, where over half of the portfolio space is located.
To keep the skill, expertise and property administration of the portfolio, the acquisition also includes the Equity Estates property management team responsible for the Abseq properties, ensuring continuity of property management.
The transaction is subject to various conditions, including approval by the competition authorities and is expected to be effective in the first quarter of 2014.
Growthpoint owns and manages 393 properties in South Africa, 44 properties in Australia through its investment in GOZ and it owns a 50% interest in the properties at V&A Waterfront in Cape Town.
This acquisition will take the value of Growthpoint’s consolidated tangible assets over R64bn.
- Fin24
