His statement came right after the group announced the transfer of a R79,3m property portfolio from a firm called Gorfil Properties to Fairvest's books.
Acquired at annual net income yield exceeding 16%, Gorfil's portfolio is nationwide. Seventy percent is retail properties, 15% is offices and 15% hotels.
The transfer of this portfolio was delayed by certain undisclosed conditions since the deal was struck when Fairvest listed towards the end of last year.
Vontas says Fairvest may soon hit the R1,5bn property asset base mark as it continues to bag new portfolios by acquisitions.
Fairvest is set to acquire a further R500m property portfolio from property investment firm Daisy Street, which should boost its asset base to about R850m.
Vontas said the Gorfil portfolio fitted well with group strategic objectives, mainly driven by growth ambitions. He said up to 70% of the portfolio's rental income was from blue chip tenants, government and major retailers.
The transaction was completed by the issue of 17,6 million linked Fairvest units at 150c each plus a cash payment of R52,9m.
Vontas said debt instruments arising from this deal and secured from Nedcor Property Finance command four years' fixed rates.
Fairvest awaits completion of the transaction between Daisy Street and Rentsure Holdings to take transfer of the R500m Daisy Street property portfolio.
With the aim of disposing of noncore assets Rentsure is selling a R91m portfolio used by former removals subsidiaries to Daisy Street, which had already been building up a portfolio. Daisy Street investors are set to get a cash and Fairvest paper combination when they sell to Fairvest.
Business Day
Publisher: Business Day
Source: Business Day
