| Tue 20 Dec 2011, 13:25 | | GRT - Growthpoint Properties Limited - Growthpoint Properties Australia |
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GRT
GRT
GRT - Growthpoint Properties Limited - Growthpoint Properties Australia
concludes significant acquisition of four quality property assets
Growthpoint Properties Limited
(Incorporated in the Republic of South Africa)
Registration number 1987/004988/06
ISIN: ZAE000037669
JSE Share code: GRT
("Growthpoint" or "the Company")
Growthpoint Properties Australia concludes significant acquisition
of four quality property assets
Growthpoint Properties Australia (ASX:GOZ) today announced that it has acquired
three modern office properties, and a 100% pre-committed office development for
a total consideration of AU$289.5 million (approximately ZAR2.4 billion).
"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," says Estienne de Klerk, Director of GOZ
and its major security holder of 61%, the largest South African listed property
company Growthpoint.
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% offices and 53% 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% 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 and initial property income
yield of 8,7% and enjoy a 4.6 year weighted average lease expiry.
"Investing in the Brisbane office market is opportune in light of expected
improved vacancy rates and effective rental growth as the Queensland economy
continues to perform well, anchored by the strong resources sector," says
Growthpoint Australia Managing Director Timothy Collyer. "We are also pleased to
purchase a significant property within the Sydney office market where
opportunities to acquire newly constructed `new generation` properties are
limited."
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 will take up its full entitlement of some AU$101.5 million
(approximately ZAR850 million) and underwrite the remaining approximately 39%,"
confirms de Klerk. "During Growthpoint`s 2011 financial year, we received a
total return of 28,6% from our investment in Growthpoint Australia. We will
continue to support its growth."
Growthpoint`s full entitlement and its underwriting commitment in terms of the
JSE Listings Requirements represents less than 5% of Growthpoint`s current
market capitalisation of approximately R31,764 Billion
The Growthpoint Properties Australia rights offer opens on the ASX on 5 January
2012 and closes on 19 January 2012.
Further information on this transaction and rights offer can be obtained on
Growthpoint Properties Australia`s website at: http://www.growthpoint.com.au
Investment Bank and Sponsor:Investec Specialist Bank
Johannesburg
20 December 2011
Ends
Date: 20/12/2011 13:25:46 Produced by the JSE SENS Department.
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