Growthpoint Properties Limited, South Africa’s largest listed property company with property assets exceeding R9 billion and a market capitalisation of more than R7 billion, announced today that it has concluded an agreement with Investec Property Group Limited to acquire Healthcare Park for a total purchase consideration of R65 million.

The estimated initial annual forward yield of the acquisition is 10.25% from the date of transfer, which is expected before the end of December 2005.
 
Healthcare Park comprises a high quality office park with a gross lettable area of 14,575m2, situated in Woodmead, Johannesburg, which is an established office node with easy access to the M1 Freeway.

“Growthpoint continues to seek acquisition opportunities which will enhance the quality of the direct property portfolio as well as the quality, long-term sustainability and growth of the income stream available to Growthpoint linked unit-holders,” said Growthpoint CEO Norbert Sasse.

Healthcare Park is underpinned by solid income streams and quality tenants with Aspen Pharmacare Holdings Limited being the largest tenant, with a five year lease.

Healthcare Park includes 16 standalone buildings set in a park-like environment adjacent to the Johannesburg Country Club and golf courses. The office buildings are all low-rise and range between 400m2 to 1,300m2 gross lettable area per building. In addition, a communal building serves the offices with a restaurant, canteen, meeting rooms, boardrooms and auditorium facilities.

The buildings, six of which are double storey and the remaining single storey, are flexible and can accommodate single or multiple tenants and are capable of alternative use in its present condition.

“Growthpoint seeks to offer its linked unit holders exposure to a sectorally well-balanced, geographically diversified, quality direct property portfolio and Healthcare Park fits these investment criteria whilst improving Growthpoint’s exposure to the buoyant office property market in Woodmead,” explained Sasse.

As this is considered a small related party transaction Growthpoint has obtained an independent fair and reasonable opinion in respect of the proposed acquisition. Investec Property Group are the managers of Growthpoint and responsible for the asset management and property administration of the property portfolio.

The acquisition is subject to Competition Commission approval.