Tower Property Holdings concludes agreement to acquire for the acquisition of the entire issued share capital of HTP Holdings Proprietary Limited, which owns a portfolio of 8 industrial properties valued at R375 750 000, from HBW Group Proprietary Limited for an aggregate consideration of R190 750 000.

The acquisition is set to provide Tower with its first significant exposure to the industrial property sector, increasing Tower’s industrial portfolio from approximately 0.9% to approximately 12% of its entire property portfolio.

The properties are situated in desirable locations in Gauteng and Kwa-Zulu Natal. The acquisition is in line with Tower’s strategy of growing its asset base with well located, diversified properties throughout South Africa. The effective date of the acquisition is 1 April 2015.

Prior to entering into the acquisition agreement, HTP, which is presently a wholly owned subsidiary of the seller, acquired the property letting enterprises in respect of each of the properties owned by HTP from various other subsidiaries of the seller in terms of which vacancies in the portfolio are guaranteed by the seller for 24 months from the effective date. The acquisition remains conditional upon approval by the Competition Commission by no later than 29 May 2015 amongst other conditions.