Johannesburg - Rebosis Property Fund, the first black-managed and substantially black-held property fund to have listed on the JSE, announced on Wednesday that it had concluded agreements for the acquisition of letting enterprises and properties from several vendors.
These vendors were listed as being Square Peg Properties (Proprietary) Limited and Rymer Trading CC (the Capital Towers acquisition"); Ziningi Properties (Proprietary) Limited (the "Revenue Building acquisition"); Swish Property Four (Proprietary) Limited (the "First Avenue acquisition"); Dream World Investments 374 (Proprietary) Limited (the "Harrison Street acquisition"); and Trifecta Prop 11 (Proprietary) Limited (the "SASSA Campus acquisition"); (each "a transaction" or "an acquisition" and together the "transactions").
The fund said that the acquisitions were consistent with Rebosis' strategy of acquiring large quality properties with a strong sovereign or blue chip underpin. The property portfolio was dominated by national government, with an element of blue chip corporate, with Standard Bank as a major tenant in one of the buildings.
It said that these strategic acquisitions would improve the geographic spread of the company's government tenanted properties resulting in less concentration in, and exposure to, Pretoria.
The total purchase consideration payable by Rebosis for the property portfolio is R734m. Payment of the purchase consideration for each of the acquisitions will be secured by separate finance guarantees for 50% of the purchase consideration payable per acquisition.
The balance of the purchase consideration will be settled through a vendor consideration placement.