| Wed 21 Sep 2005, 11:49 | | Growthpoint Properties Limited - Acquisition Of Th |
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Growthpoint Properties Limited - Acquisition Of The Healthcare Park Office Park,
Woodmead, Johannesburg (`Healthcare Park`)
GROWTHPOINT PROPERTIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1987/004988/06)
Share code: GRT ISIN: ZAE000037669
(`Growthpoint`)
ACQUISITION OF THE HEALTHCARE PARK OFFICE PARK, WOODMEAD, JOHANNESBURG
(`HEALTHCARE PARK`)
1. INTRODUCTION
Investec Bank Limited is authorised to announce that Growthpoint has concluded
an agreement with Investec Property Group Limited (`IPG`), in terms of which
Growthpoint will acquire Healthcare Park for a total purchase consideration of
R65 million (`the acquisition`).
The effective date of the acquisition will be the date of transfer of
Healthcare Park, which is subject to Competition Commission approval. The
anticipated date of transfer is expected to be before the end of December 2005
(`the transfer date`).
2. TERMS OF THE ACQUISITION
2.1 Acquisition consideration
Growthpoint will acquire Healthcare Park for a total purchase consideration of
R65 million, which will be settled in cash on date of transfer and
registration of Healthcare Park into the name of Growthpoint, by utilising
Growthpoint`s existing debt facilities.
2.2 Healthcare Park
Healthcare Park comprises a high quality office park with a gross lettable
area of 14 575m2, situated in Woodmead, Johannesburg, which is an established
office node with easy access to the M1 Freeway.
The improvements consist of 16 stand alone buildings set in a park-like
environment adjacent to the Johannesburg Country Club and golf courses. The
office buildings are all low-rise and range between 400m2 to 1 300m2 gross
lettable area per building. A communal building that complements the offices
accommodates a restaurant, canteen, meeting rooms, boardrooms and auditorium
facilities.
The buildings, six of which are double storey and the remaining single storey,
are flexible and can accommodate single or multiple tenants and are capable of
alternative use in its present condition.
Healthcare Park is underpinned by solid income streams and quality tenants.
Aspen Pharmacare Holdings Limited is the largest tenant with a five-year
lease.
2.3 Rationale for the acquisition
Growthpoint management continues to seek acquisition opportunities which will
enhance the quality of the Growthpoint direct property portfolio as well as
the quality, long-term sustainability and growth of the income stream
available to Growthpoint linked unitholders.
Growthpoint also seeks to offer its linked unit holders exposure to a
sectorally well-balanced, geographically diversified, quality direct property
portfolio and the directors are of the opinion that Healthcare Park fits the
above investment criteria whilst improving Growthpoint`s exposure to the
buoyant office property market in Woodmead.
The estimated initial annual forward yield of the acquisition is 10.25% from
the transfer date.
3. FINANCIAL EFFECTS
The acquisition will not have a material effect on the earnings per
Growthpoint linked unit, distribution per Growthpoint linked unit or net asset
value per Growthpoint linked unit.
4. RELATED PARTY TRANSACTION
In terms of Section 10.7 of the Listings Requirements of the JSE Limited
(`JSE`) the transaction is regarded as a small related party transaction as
IPG are the managers of Growthpoint and are responsible for the asset
management and property administration of the Growthpoint property portfolio.
Accordingly, Growthpoint has provided the JSE with written confirmation (`the
fair and reasonable opinion`) from an independent professional expert that the
terms of the acquisition are fair and reasonable to Growthpoint linked
unitholders. The fair and reasonable opinion will lie open for inspection at
the registered office of Growthpoint, Ground Floor, Investec Building, 100
Grayston Drive, Sandton for a period of 28 days from the date of publication
of this announcement.
For and on behalf of the board
Growthpoint Properties Limited
Sandton
21 September 2005
Merchant bank
Investec Corporate Finance
Investec Bank Limited
(Registration number 1969/004763/06)
Sponsor
Investec Bank Limited
(Registration number 1969/004763/06)
Independent advisor
ERNST & YOUNG
EY Corporate Finance (Pty Ltd)
(Registration number 2000/031575/07)
Date: 21/09/2005 11:37:35 AM
Produced by the JSE SENS Department
