Deal with Vontas will transform Gold Edge.

Posted On Friday, 24 January 2003 10:01 Published by eProp Commercial Property News
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Prroperty group Gold Edge Holdings is to grow its portfolio R480m to become a R600m listed property fund in a deal with property investor Niki Vontas.

Property-Housing-ResidentialThe transaction will also transform Gold Edge's capital structure making the group a property loan stock company. This will enable Gold Edge to make further acquisitions by taking advantage of the flexibility that comes with a property loan stock structure with regard to raising capital.

The portfolio that will be acquired is housed in a vehicle called Daisy Street Investment 165, put together by Vontas.

The transaction is to be settled through a split of cash and issue of paper and should extend Vontas's influence in the listed property sector.

Vontas is involved in two other property funds, Fairvest and Bonatla. He is developing a proposal to merge the two.

The portfolio to be transferred from Daisy Street to Gold Edge is made up of A, B and C grade retail, commercial and industrial property. The portfolio will be acquired on a net preinterest yield of about 14,5%.

Gold Edge CEO, Selwyn Smith, says through this transaction the company has realised its ambition to grow its asset base while focusing on quality.

He says the transaction will also enable Gold Edge to reduce its gearing ratio to the 50% level acceptable in the industry. In the results for the year ended June, the group's asset register showed an investment property portfolio valued at R46m plus investments of R10,5m against long term liabilities of R51,1m.

Gold Edge attracted some attention when it acquired two years ago a 20% stake in Killarney Mall, a Johannesburg shopping centre.

Smith said Gold Edge would continue trading under a cautionary notice until the transaction was finalised, which was conditional on the outcome of a due diligence investigation of Daisy Street.

Last modified on Tuesday, 06 May 2014 13:23

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