Arrowhead Properties acquires 9.76% shares in Rebosis Property Fund

Posted On Tuesday, 08 March 2016 12:25 Published by
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Arrowhead Properties acquires 9.76% shares in Rebosis Property Fund.


Arrowhead acquired an aggregate of 50 562 338 ordinary shares in Rebosis Property Fund, equating to 9.76% of the issued share capital of Rebosis, from a number of institutional and other shareholders, in consideration for either cash or the issue of Arrowhead ordinary shares, with the last such acquisition effective on 4 March 2016.

Rebosis is a Real Estate Investment Trust listed on the Main Board of the JSE with a market capitalisation of approximately R5.5 billion and a portfolio comprising a mix of retail and office properties.

According to Rebosis management, the company "received a friendly approach from Arrowhead towards the end of 2015". 

"Arrowhead at the time indicated that it sees value in the high quality of Rebosis’ underlying portfolio and its management team and assured Rebosis management that its interest is based on the yield differential that would be enhancing to Arrowhead and that it has no intention for a take-over or control of Rebosis," Rebosis said. 

The Rebosis shares acquired by Arrowhead have a combined value of approximately R547 million and attributable profits of approximately R60 million for the financial year ending 31 August 2016.

Arrowhead board of directors believes that the price at which the company was able to acquire the Rebosis shares represents good value and an opportunity to acquire a stake in high quality assets on a yield enhancing basis.

”This acquisition of 9.76% of Rebosis at a combined value of approximately R547 million was concluded in line with our strategy to acquire assets on a yield enhancing basis. The transaction increases our exposure to a good quality portfolio of assets. Arrowhead remains lowly geared with no capital commitments that enables us to take advantage of good opportunities in a challenging economic environment,” said Mark Kaplan, COO of Arrowhead Properties.

Sisa Ngebulana, Chief Executive of Rebosis commented: “This investment affirms the view that Rebosis’ portfolio is of a superior quality, trading at an unjustifiable discount.

“As a management team, we remain committed to our stated objective of unlocking shareholder value by optimising Rebosis group into specialised funds with superior quality underlying assets and sector specific management expertise.

Last modified on Wednesday, 09 March 2016 08:24

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