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Bonatla signs property deals worth R445m

Posted On Thursday, 01 October 2009 02:00 Published by
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Property firm Bonatla Holdings and its subsidiary Bonatla Properties have signed agreements with various parties for the acquisition of properties.

Property firm Bonatla Holdings and its wholly-owned subsidiary Bonatla Properties have signed agreements with various parties for the acquisition of properties and shares in property-owning companies with a gross property investment value of R444.966 million.

Bonatla said the proposed acquisitions were in line with its updated investment strategy, which entails focussing primarily on acquiring high quality properties which are also sound rental income producing investments.

The proposed acquisitions provide the added advantage of a national geographical spread, a high proportion of tenants with good lease covenants, and staggered leases, which were written below current market levels.

Finally, the firm said the gearing ratio of the portfolio to be acquired in terms of the proposed acquisition was below 15% of current market value.

A sale of shares agreement had been signed between Bonatla Properties, Bonatla Property Holdings and seven property holding companies.

The companies are Chambers Ground Floor Properties, Proud Heritage Properties 131, Copper Moon Trading 249, Bishop's Court Properties, Tropical Paradise 320, Southern Palace 331 and Street Spirit Trading 117.

In terms of the agreement, Bonatla Properties will acquire 100% of the issued share capital in Watloo, Celtis Plaza, Chambers 1, Chambers Ground Floor, Bishop's Court Section 3-8, Chambers 2 & 3 and Southern Palace.

The total value of the portfolio at current valuation levels is R186.200 million and the current outstanding bonds on the properties amount to R49.148 million.

In terms of the current lease agreement, the total annual rental on the properties is R11.820 million, giving an annual yield of 10.16% on the gross purchase price. The properties are currently 93% let.

The effective date of the acquisition will be October 1 2009.

An acquisition agreement had been also been signed whereby Bonatla Properties has agreed to purchase a portfolio of properties for a total consideration of R258.766 million.

The purchase consideration for the portfolio will be discharged by the issue of 345,021 Bonatla ordinary shares of one cent each at an issue price of 75 cents per Bonatla share, and 344,676 312 non-participating, non-redeemable, non-cumulative compulsory convertible preference shares each with a par value of R0.01 and a premium of R0.74 per preference share in the share capital of Bonatla.

These preference shares shall be converted on the second anniversary of the issue thereof into ordinary shares in the share capital of Bonatla at a value of 75 cents per share.

Regarding the Mingha acquisition, Bonatla advised shareholders that the due diligence was still in progress and that further announcements would be made when this was completed.

Shareholders were further advised to continue to exercise caution when dealing in their shares.

Source: I-Net Bridge

Publisher: I-Net Bridge
Source: I-Net Bridge
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