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GRT
GRT
GRT - Results announcement and acquisition by Growthpoint Properties Australia
("GOZ") of a portfolio of property assets for a$172 million
Growthpoint Properties Limited
(Incorporated in the Republic of South Africa)
(Registration number 1987/004988/06)
Share code: GRT ISIN ZAE000037669
("Growthpoint")
RESULTS ANNOUNCEMENT AND ACQUISITION BY GROWTHPOINT PROPERTIES AUSTRALIA
("GOZ") OF A PORTFOLIO OF PROPERTY ASSETS FOR A$172 MILLION
1. INTRODUCTION
GOZ announced results for the year ended 30 June 2010 today as well as the
acquisition of a portfolio of seven direct property assets ("Portfolio
Acquisition") from Property Solutions Group ("Property Solutions"), a Brisbane
based developer, for a purchase consideration of A$172 million (before
transaction costs).
GOZ intends to fund the Portfolio Acquisition from debt facilities and from a
A$101 million renounceable rights offer ("Rights Offer").
2. DETAILS OF THE PORTFOLIO ACQUISITION
The Portfolio Acquisition consists of seven high quality Queensland properties
comprising two office buildings, a car park, and four industrial properties.
The GOZ property portfolio will increase to a total of 32 properties following
the conclusion of the Portfolio Acquisition. The Portfolio Acquisition is
100% occupied and has a weighted average lease expiry ("WALE") of 6.5 years.
The initial income yield of the Portfolio Acquisition is 8.4%.
The Portfolio Acquisition supports GOZ`s strategy to diversify its property
portfolio from pure industrial and to acquire quality properties with long
WALE, high occupancy and annual rental growth adjustments.
3. DETAILS OF THE RIGHTS OFFER
The Rights Offer will be undertaken to raise approximately $101 million at an
offer price of A$1.90 ("Offer Price"). GOZ security holders will be offered
one new stapled security for every three stapled securities held. The Offer
Price of $1.90 per new stapled security represents a discount of 4.7% to the
pro forma net tangible assets per stapled security as at 30 June 2010 and a
pro forma distribution yield of 9.0% based on FY2011 distribution guidance of
17.0 cents per stapled security. The FY2011 pro forma distribution guidance
has been prepared on the basis that the Portfolio Acquisition and Rights Offer
both took place on 1 July 2010.
4. Growthpoint participation in the Rights offer
Growthpoint has indicated that it will subscribe for its rights in the Rights
Offer in GOZ which equates to a further investment in GOZ of approximately
A$77 million. Growthpoint will consider renouncing or selling a portion of
its rights in the Rights Offer depending on the investor demand. This is in
keeping with previous statements by Growthpoint that it intends to dilute its
holding in GOZ over time as GOZ expands.
5. INDICATIVE TIMING FOR THE PROPOSED ACQUISITION
It is anticipated that the Rights Offer will close on 17 September 2010 with
the Portfolio Acquisition being implemented by 28 September 2010.
An announcement containing all details relating to the GOZ results for the
year ended 30 June 2010, the Portfolio Acquisition and Rights Offer has been
released by GOZ on 17 August 2010 in terms of the ASX regulations and is
available at the ASX website at www.asx.com.au. For further details on the GOZ
Property Portfolio, Growthpoint linked unitholders are referred to
www.growthpoint.com.au
17 August 2010
Johannesburg
Investment Bank and Sponsor to Growthpoint: Investec Bank Limited
Date: 17/08/2010 13:40:02 Produced by the JSE SENS Department.
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