Fairvest acquires R233m property portfolio from Vukile Property Fund

Posted On Saturday, 12 October 2013 00:21 Published by
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Fairvest Property Holdings acquires R233.9 million retail property portfolio from Vukile Property Fund's subsidiary, MICC Properties.

Laurence Rapp

Fairvest and Vukile have agreed to a strategic relationship and following implementation of the transaction, Vukile will hold directly and through MICC, 31.7% of Fairvest's issued linked units.

The disposal of the retail portfolio to Fairvest is in line with Vukile's strategy to focus on larger retail properties in the lower LSM sector, whilst the resultant holding in Fairvest provides Vukile with ongoing indirect exposure to smaller retail centres in this sector, consistent with Vukile's stated strategy of increasing its exposure to lower LSM retail.

Vukile is backing Fairvest's management team to drive above market growth through their active hands on management approach, which in a smaller fund like Fairvest can make a significant impact on growth in distributions.

From Fairvest's perspective the relationship will provide the opportunity to access Vukile's deal flow in regard to retail assets that fall outside of Vukile's strategic focus, but within Fairvest's, which is expected to add substantially to Fairvest's pipeline, and, more broadly, will provide the opportunity for Fairvest to benefit from the experience and expertise of Vukile as a strategic investor.

In addition, settling the full Purchase Price through the issue of Fairvest linked units will reduce Fairvest's loan to value levels to approximately 20%, thereby allowing Fairvest headroom to make significant further yield-enhancing acquisitions through debt funding. 

Last modified on Saturday, 12 October 2013 00:52

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