| Fri 23 Nov 2007, 12:37 | | GRT - Growthpoint - Acquisition |
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GRT
GRT
GRT - Growthpoint - Acquisition
GROWTHPOINT PROPERTIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1987/004988/06)
Share code: GRT & ISIN: ZAE000037669
("Growthpoint")
ACQUISITION BY GROWTHPOINT OF TWO SEPARATE LETTING ENTERPRISES FROM MIDRAND TOWN
CENTRE (PROPRIETARY) LIMITED ("MTC") AND INVESTEC PROPERTY GROUP LIMITED ("IPG")
RESPECTIVELY, COLLECTIVELY ("the acquisitions")
1 Introduction
Investec Bank Limited is authorised to announce that Growthpoint has entered
into two separate acquisition agreements in terms of which it will acquire the
letting enterprise situated at Erf 43 and Erf 44, Grand Central Extension 1
Township ("the Midrand property") from MTC as well as the letting enterprise
situated at the remaining extent of Erf 132, Rosebank Township ("the Rosebank
property") from IPG.
The effective date of the acquisitions will be the respective dates of transfer
and registration of the Midrand property and the Rosebank property into the name
of Growthpoint.
2 Purchase Consideration
The Midrand property will be acquired for a total purchase consideration of R64
430 087 (sixty four million four hundred and thirty thousand and eighty seven
rand), whilst the Rosebank property will be acquired for a total purchase
consideration of R49 505 417 (forty nine million five hundred and five thousand
and four hundred and seventeen rand).
The purchase consideration for both properties will be settled in cash on
transfer and registration of the properties into the name of Growthpoint.
3 Suspensive Conditions
There are no suspensive conditions outstanding in terms of the acquisitions.
4 Nature of the business
Growthpoint is a property investment holding company with a diversified
portfolio of 419 properties valued at more than R22 billion at 30 June 2007.
Measured by market capitalisation and total assets, Growthpoint is currently the
largest listed South African property company on the JSE with a market
capitalisation in excess of R19 billion.
5 Rationale
Growthpoint`s stated objective is to offer investors geographically and
sectorally diversified exposure to physical property assets underpinned by long-
term, sustainable, escalating income streams. The acquisitions will offer
Growthpoint and its linked unitholders increased exposure to the Midrand and
Rosebank office markets which are expected to provide attractive returns over
the medium term especially considering the impact of the Gautrain rapid rail
project and the proposed stations in both Midrand and Rosebank.
6 Related Party Transaction
In terms of the Listing Requirements of the JSE, MTC and IPG are related parties
to Growthpoint (collectively "the related parties") because, at the time of
entering into the agreements, IPG was the appointed property administrator and
property asset manager of Growthpoint and MTC is a wholly-owned subsidiary of
IPG. Consequently, the acquisitions will be regarded as small related party
transactions for Growthpoint. The acquisitions are exempt from providing a fair
and reasonable opinion as the letting enterprises have been subject to a
valuation in terms of the Listing Requirements of the JSE as set out below.
7 Valuation
Roger Hunting ("valuer") acting on behalf of C B Richard Ellis performed a
valuation on the letting enterprises, effective date being the 1st of October
2007. Based on the aforementioned the letting enterprises were valued at R122.4
million. The valuer`s confirmation of independence was received by the JSE in
terms of the JSE Listing Requirements. The valuation report prepared by the
valuer will lie open for inspection at Growthpoint`s registered office for a
period of 28 days from the date of this announcement.
8 Property Specific Information
Property Location Rentable Projected Purchas Effective Value as per
area initial e price date valuer
forward of
yield acquisition
Aventis, Cnr. 7,909 m2 10,37% R64 430 Transfer R72,700,000
Midrand Grand 087 date
Central
Blvd. &
K101,
Midrand
Erf 43 &
Erf 44,
Grand
Central
Ext 1
7 Sturdee 7 3,674 m2 8,75% R49 505 Transfer R49,700,000
Avenue, Sturdee 417 date
Rosebank Avenue,
Rosebank
Erf
R/E/132
& Erf
1/132,
Rosebank
Township
9 Financial Information
The pro forma effect on the net assets and net tangible assets per linked unit
due to the acquisitions as well as the profits attributable to the net assets
acquired and subsequent effect on the historical and headline earnings per
linked unit is not significant as per the JSE Listing Requirements.
Investment Bank and Sponsor
Investec Bank Limited
Attorneys to Growthpoint
Jowell Glyn & Marais
23 November 2007
Date: 23/11/2007 12:37:58 Produced by the JSE SENS Department.
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