Growthpoint Properties Australia has acquired three office properties and a 100 percent pre-committed office development for AU$289.5 million.
Growthpoint Properties Australia has acquired three office properties and a 100 percent pre-committed office development for AU$289.5 million. Growthpoint Australia’s portfolio value has more than doubled over the last three years, from 24 properties valued at AU$662 million in June 2009 to 40 properties worth $1.54 billion (approximately ZAR12.9 billion) as a result of this transaction.
Growthpoint Australia’s portfolio value has more than doubled over the last three years, from 24 properties valued at AU$662 million in June 2009 to 40 properties worth $1.54 billion (approximately ZAR12.9 billion) as a result of this transaction.
The portfolio has also diversified from a purely industrial property to a spread of 47 percent offices and 53 percent industrial property.
The acquisitions include three office buildings in Queensland, two in South Brisbane and a 24-level A-grade office building in the Brisbane CBD and an office building currently under construction at Gore Hill Technology Park in Sydney, New South Wales, which will be 48 percent leased to Fox Sports (Premier Media Group) on completion in early 2013.
This development is targeting a 5-star National Australian Built Environment Rating System (NABERS) rating and a 5-star Green Star rating.
The new assets are fully let and together represent an initial property income yield of 8.7 percent and enjoy a 4.6 year weighted average lease expiry.
Estienne de Klerk, director of GOZ says these assets provide an excellent investment opportunity and continue to achieve Growthpoint Australia’s strategic objectives of delivering distribution growth to investors through acquisition and diversification, targeting well-tenanted, quality, modern properties.
The acquisitions will be partially funded by a rights offer to raise approximately AU$166.4 million (approximately ZAR1.4 billion) at an issue price of AUD1.90 per Growthpoint Australia stapled security.
Growthpoint South Africa will take up its full entitlement of some AU$101.5 million (approximately ZAR850 million) and underwrite the remaining approximately 39 percent, says de Klerk.
“During Growthpoint South Africa’s 2011 financial year, we received a total return of 28.6 percent from our investment in Growthpoint Australia and we will continue to support its growth.”
The Growthpoint Properties Australia rights offer opens on the ASX on 3 January 2012 and closes on 19 January 2012.
Meanwhile, Johannesburg Stock Exchange (JSE) listed property company, Dipula Income Fund has acquired three retail properties valued at R247.8 million.
Dipula has concluded an agreement to acquire Bochum Plaza and Blouberg Plaza, adjacent retail centres totalling some 12 500 square metres both in Bochum, Limpopo and 15 000 square metres Nquthu Plaza in Nquthu, KwaZulu-Natal.
Bochum and Blouberg Plaza are situated near a commuter taxi rank and anchor tenants include Pick n Pay and Cashbuild. Nquthu Plaza is anchored by Shoprite and Cashbuild. Both properties are 100 percent let.
The acquisition is part of Dipula’s strategy to increase its retail portfolio exposure to low-income households, which are expected to outperform higher-income households in terms of growth in the short- to medium-term.
Dipula has concluded an agreement to acquire Bochum Plaza and Blouberg Plaza, adjacent retail centres totalling some 12 500 square metres both in Bochum, Limpopo and 15 000 square metres Nquthu Plaza in Nquthu, KwaZulu-Natal.
“These strategic acquisitions will grow Dipula’s portfolio and achieve the increased quality, average size and geographic diversification of our portfolio,” says Dipula Income Fund chief executive officer, Izak Petersen.
Dipula Income Fund offers an A and B unit structure and it listed on the JSE in August 2011.
The company owns a diversified property portfolio, located throughout South Africa, with a retail bias to low income households.
The Dipula portfolio consists of over 170 properties and the new acquisitions will grow the portfolio to 178 properties valued at in excess of approximately R2.3 billion and spanning a total of 463 000 square metres.
The acquisitions remain subject to a number of conditions, including Competition Authorities approval and Dipula securing financing, which may be done by way of debt or equity funding.
