The merger of Metboard properties with sister company Growthpoint Properties has been given final approval by the Competition Tribunal.

The merger, effective on June 30, will add industrial properties worth R2bn to Growthpoint's property portfolio.

CEO Norbert Sasse said yesterday that previously Growthpoint's industrial property portfolio was less than 10% of the group's entire portfolio.

The transaction would increase the industrial component of Growthpoint's portfolio to 22%.

"We believe the industrial sector in the short term is going to outperform retail and offices, and we are now well positioned to stand to benefit from that," said Sasse.

Retail properties now comprise about 40% of the portfolio while offices make up 38%.

The combined portfolio, including Growthpoint's recent R1,4bn acquisition of properties from Tresso Trading, will result in Growthpoint's property assets growing to more than R13,5bn in value.

The market capitalisation of Growthpoint, the largest listed property company on the JSE, will be about R11bn.

Subsequent to the merger, Metboard will become a wholly owned subsidiary of Growthpoint.

Growthpoint said that there would also be continuity of asset and property management as Investec Property Group managed both Growthpoint and Metboard.

Trade of Metboard linked units will be suspended from the opening of trade on August 14 this year.

Metboard will pay a special interim distribution to its linked unitholders in respect of the quarter ending June 30 to take account of the different financial year-ends of Metboard and Growthpoint.

A lot of corporate and merger activity is expected in the listed property sector this year.

There is market speculation that Redefine Income Fund, one of the largest listed property loan stock companies, is looking to take over the smaller Paramount Property Fund, as well as two other listed property companies.

Redefine and these companies are trading under a cautionary.
 
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Publisher: I-Net Bridge
Source: I-Net Bridge