|
Growthpoint - Acquisition of the City Mall Shopping Centre in Klerksdorp
GROWTHPOINT PROPERTIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1987/004988/06)
Share code: GRT & ISIN: ZAE000037669
("Growthpoint" or "the company")
ACQUISITION OF THE CITY MALL SHOPPING CENTRE IN KLERKSDORP
("CITY MALL")
1. INTRODUCTION
Investec Bank Limited is authorised to announce that Growthpoint has concluded
an agreement with the Johannesburg Municipal Pension Fund and the City of
Johannesburg Pension Fund, in terms of which Growthpoint will acquire City Mall
for a total purchase consideration of R105 million ("the acquisition").
The effective date of the acquisition will be the date of transfer of City Mall,
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 City Mall for a total purchase consideration
of R105 million, which will be settled in cash as follows:
- R2.5 million on date of signature; and
- R102.5 million on the date of transfer and registration of City
Mall into the name of Growthpoint, by utilising Growthpoint"s
existing debt facilities.
2.2 City Mall
City Mall Shopping Centre is located in Klerksdorp, a regional
commercial node in the Northwest Province which is supported by a
catchment area including Orkney, Stilfontein and Wolmaransstad. The
property is situated in the central business district of Klerksdorp
and serves as the premier shopping centre of Klerksdorp.
The building, constructed in 1997, comprises a single level shopping
centre and a cinema complex. The centre has a gross lettable area of
18 197m2 with the following anchor tenants: Pick `n Pay (3 428m2);
Woolworths (3 374m2); Nu Metro (2 063m2) and Jet Stores (1 556m2).
Other well known national retailers represented are Mr Price,
Foschini, New Clicks and Truworths. There are no vacancies with a
tenant mix of national tenants greater than 80%.
The leases of the two largest anchor tenants, being Pick "n Pay and
Woolworths, have leases expiring in 2017 and 2012 respectively. There
are also exciting opportunities to redevelop existing space to address
the demand from national retailers to expand.
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 City Mall
fits the above investment criteria whilst improving Growthpoint"s
exposure to the buoyant retail property market in Klerksdorp.
The estimated initial annual forward yield of the acquisition is
10.35% from the transfer date.
For and on behalf of the board
Growthpoint Properties Limited
Sandton
3 October 2005
Merchant bank
Investec Corporate Finance
Investec Bank Limited
(Registration number 1969/004763/06)
Sponsor
Investec Bank Limited
(Registration number 1969/004763/06)
Date: 03/10/2005 03:14:09 PM Produced by the JSE SENS Department
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
