Listed property group Spearhead Property has agreed to buy Pier Place in the central Roggebaai area of Cape Town for a maximum of R152.8 million, the company says.

The acquisition is subject to the approval of the competition authorities.

Spearhead will satisfy the purchase price via the payment of R15.96 million in cash, while raising the balance of R136.84 million through the issuance of 6.22 million new Spearhead linked units at a price of R22 per linked unit. The new units will be sold as part of a private placement to institutions, banks and other investors.

The issue price of R22 per linked unit represents a 4.5% discount to the weighted average traded price of linked units on the JSE for the 30 business days prior to July 21, the date on which the directors authorised the vendor placing.

An existing Spearhead unitholder, Ngatana Property Investments, holding 12.2% of the company's issued capital, will buy more shares in the placing, the company added.

I-Net Bridge
 

Publisher: I-Net Bridge
Source: I-Net Bridge