Johannesburg - Vividend Income Fund has entered
into an agreement with the Sasol Pension Fund to acquire two Sasol [JSE:SOL]
tenanted properties and associated letting enterprises in Randburg for R155.6m.
The properties are situated at 272 Kent Avenue, Ferndale,
and 316 Kent Avenue, Ferndale.
The company said on Friday that the acquisition is
consistent with Vividend's strategy of identifying and acquiring properties
that have free cash flow yields that provide adequate value enhancement to
linked unit holders from the effective date of their acquisition.
The Sasol Kent Street acquisition provides further quality,
stability, longevity and growth potential to the company's earnings by
introducing blue chip medium-term triple net leases into the company's lease
profile, it said.
The purchase consideration is payable in cash and Vividend
said it would fund the purchase consideration through a combination of debt
financing and new equity raised from new and existing linked unit holders.
The acquisition is subject to conditions, including the
satisfactory completion of a due diligence investigation, approval from the
trustees of the Sasol Pension Fund, Vividend obtaining the appropriate
irrevocable funding commitments from existing or new debt funders and
Competition Commission approval.
Vividend advised linked unit holders to exercise caution
when dealing in the company's securities until a full announcement regarding
the pro forma financial effects and the forecast financial information in
relation to the acquisition is made.