Growthpoint acquires Property Solutions' assets

Posted On Wednesday, 18 August 2010 02:00 Published by eProp Commercial Property News
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South Africa's largest listed property group Growthpoint Properties announced on Tuesday that Growthpoint Properties Australia (GOZ) has acquired a portfolio of seven direct property assets from the Property Solutions Group for AUS$172 million.

 

Growth Point PropertiesGrowthpoint Properties Australia intends to fund the acquisition from debt facilities and from an AUS$101 million renounceable rights offer.

The acquisition consists of seven high quality Queensland properties comprising two office buildings, a car park, and four industrial properties.

Its property portfolio will increase to a total of 32 properties following the conclusion of the portfolio acquisition.

Growthpoint said the acquisition is 100% occupied and has a weighted average lease expiry (WALE) of 6.5 years.

The initial income yield of the portfolio Acquisition is 8.4%.

"The Portfolio Acquisition supports Growthpoint Australia's strategy to diversify its property portfolio from pure industrial and to acquire quality properties with long WALE, high occupancy and annual rental growth adjustments," Growthpoint said.

The rights offer will be undertaken to raise approximately AUS$101 million at an offer price of AUS$1.90.

Growthpoint Australia security holders will be offered one new stapled security for every three stapled securities held.

The offer price of AUS$1.90 represents a discount of 4.7% to the pro forma net tangible assets per stapled security as at end June 2010 and a pro forma distribution yield of 9.0% based on full year 2011 distribution guidance of 17.0 cents per stapled security.

The FY2011 pro forma distribution guidance has been prepared on the basis that the portfolio acquisition and rights offer both took place on 1 July 2010.

Growthpoint Properties has indicated that it will subscribe for its rights in the rights offer in Growthpoint Australia which equates to a further investment of approximately AUSA$77 million.

Growthpoint Properties will consider renouncing or selling a portion of its rights in the rights offer depending on the investor demand.

This is in keeping with its previous statements that it intends to dilute its holding in Growthpoint Australia over time as it expands.

It is anticipated that the rights offer will close on 17 September with the portfolio acquisition being implemented by 28 September.

Last modified on Tuesday, 22 April 2014 18:36

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