Ambit set to acquire Abseq in R1,03bn deal

Posted On Monday, 22 October 2007 02:00 Published by eProp Commercial Property News
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Listed property loan stock company Ambit Properties has announced it will acquire Abseq Properties, which owns one of the “premier office portfolios in Johannesburg’s northern suburbs”, in a transaction valued at R1,036bn.

Property-Housing-ResidentialThis transaction and two other recent property acquisitions will effectively triple Ambit’s size, giving it a market capitalisation of R3bn. The transaction will be settled through the issue of new Ambit units for R817m and the balance in cash.

Ambit CEO Nick Harris said on Friday Abseq Properties’ premier properties included Woodmead Office Park, consisting of 11 freestanding buildings; Country Club Office Park, consisting of six buildings backing on to the Johannesburg Country Club Golf Course; and Peter Place Office Park. Absa Bank is a 50% shareholder in Abseq.

Abseq also holds nine buildings in Chistlehurston; four buildings in West Street in Houghton; two in Riviera Road in Houghton, including the US Consulate; two properties in Bompas Road, Dunkeld West, including the British Consulate; Santam House in Bruma; and the Valley Shopping Centre in Dainfern.

On Wednesday Ambit announced it had acquired 11 Diagonal Street and the West Street Parkade in Johannesburg’s central business district from Absa Bank for R303,5m. Absa has just entered into a seven-year lease over 11 Diagonal Street and a major portion of the West Street Parkade. Pick ’n Pay will enter into a 10-year lease on the majority of the West Street Parkade retail space.

Harris said the rationale behind the transactions was to increase Ambit’s exposure to the office property market and to boost its market capitalisation.

He said Ambit would be issuing new units for the full purchase price of the Diagonal Street transaction.

In June the Cape Empowerment Trust, a property-focused private equity fund in the Western Cape, and African Alliance Properties announced they had sold their property portfolio, amounting to R690m, payable in units, to Ambit. The deal is still being finalised.

“After these transactions we will be 79% exposed to offices, 15% to retail and 6% to industrial, and then well placed to take advantage of the rental growth predicted from offices,” said Harris.

The Abseq and Diagonal Street transactions will maintain Absa’s interest in Ambit above 30%.

Last modified on Wednesday, 23 April 2014 11:06

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