Pangbourne CEO Athol Campbell said on Friday the portfolio was acquired on a forward yield of 13,97%, and that the recent interest rate cut would enable the company to finance the transaction more cheaply.
He said Pangbourne would use its existing borrowing facilities to finance the transaction. Transfer of the properties is expected to take place in October .
Campbell said a large chunk of the portfolio consisted of single-tenanted retail properties. One of the largest properties in the portfolio is Oxford Manor in Illovo, Johannesburg. Campbell said one of Pangbourne's objectives would be to fill vacant space at Oxford Manor.
The transaction is still subject to approval from the Competition Commission, and from Pangbourne shareholders and debenture holders.
Last month Pangbourne indicated that it would continue its investment drive into diversified specialised portfolios such as its investment in iFour Properties in which it holds a 48% interest.
