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GRT
GRT
Growthpoint - Placement Of Third Issue Of Growthpoint"s Commercial
Mortgage Backed Securitisation Notes
Placement Of Third Issue Of Growthpoint"s Commercial Mortgage Backed
Securitisation Notes
Thursday, September 7, 2006
GROWTHPOINT PROPERTIES LIMITED
(Incorporated in the Republic of South Africa)
Registration number 1987 / 004988 / 06
ISIN: ZAE000037669
Share code: GRT
(Growthpoint or the company)
PLACEMENT OF THIRD ISSUE OF GROWTHPOINT"S COMMERCIAL MORTGAGE BACKED
SECURITISATION NOTES
1. Introduction
Investec Bank Limited is authorised to announce that Growthpoint has
successfully placed the largest commercial mortgage backed bond issue to
date of one billion Rand, in a book build exercise concluded on Monday, 4
September 2006, in the third issue of its R5 billion Commercial Mortgage
Backed Securitisation (CMBS) programme announced in 10 October 2005. The
pricing over the 3 month JIBAR rate achieved on the 5 year term notes was
as follows:
- Aaa.za 0.40% over 3-M JIBAR
- Aa2.za 0.45% over 3-M JIBAR
- A2.za 0.77% over 3-M JIBAR.
The weighted average price of the issue is 0.51% over the 3 month JIBAR
rate and an "all-in" fixed rate for the 5 year term of the bonds of 9.08%
The bonds will be listed on the Bond Exchange of South Africa on 7
September 2006.
The bonds are secured by 103 industrial properties across South
Africa valued at over R1,6 billion, with a loan to value of
approximately 60%.
2. Rationale and Proposed Benefits
The proposed benefits of Growthpoint"s CMBS programme include:
- lower average cost of borrowings;
- diversification of borrowing sources;
- increased competitive advantage of Growthpoint to make value
enhancing acquisitions; and
- increased distributions to Growthpoint linked unit holders.
The proceeds of the issue will be used to settle the bridging finance
that was taken to partly fund the recent acquisition of the Metboard
Properties industrial portfolio.
For and on behalf of the board
Growthpoint Properties Limited
Sandton
7 September 2006
Investment bank Sponsor
(Investec Corporate Finance) (Investec Bank)
Lead Arranger and Manager Attorneys to Growthpoint
(Investec Treasury & Specialised Finance) (Jowell Glyn & Marais)
Attorneys to the Arranger and Issuer
(Webber Wentzel Bowens)
Date: 07/09/2006 10:16:14 AM Produced by the JSE SENS Department
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