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Redefine buying Leaf Property Fund valued at about R3.7bn

Redefine is building Webber Wentzel Attorney's new headquarters at its 90 Rivonia Road property in Sandton

Redefine is building Webber Wentzel Attorney's new headquarters at its 90 Rivonia Road property in Sandton

28th January 2015

By: Creamer Media Reporter

  

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JSE-listed real estate investment trust Redefine has concluded an agreement to acquire Leaf Property Fund, which has a portfolio of high-quality commercial property assets in prime locations across South Africa valued at about R3.7-billion.

Redefine noted in a statement to shareholders on Wednesday that the acquisition, effective March 1, was in line with the company’s strategy of improving the quality of its core property portfolio by acquiring high-quality assets that offered cash-flow comfort and low vacancy levels.

In terms of the sale agreement, Redefine would acquire all the linked units and claims against Leaf for a purchase consideration comprising about R3.7-billion and less the amount of Leaf’s liabilities, including debt funding, adjusted for the marked-to-market value of all hedges and the net working capital of the Leaf Property Fund group on the effective date. The purchase consideration further included nonproperty-related fixed assets at the written down book value thereof and less the estimated value of certain uncompleted maintenance capital expenditure (capex) – subject to a maximum of R10.8-million – and certain capex that could be incurred by Leaf before March 1.


The purchase consideration would be discharged on the later of March 1 and the fifth business day after the last of the conditions precedent had been fulfilled or waived, or on a date agreed upon in writing between Redefine and Leaf.

On the closing date, 80% of the purchase consideration would be settled through the issue of Redefine shares, at the clean 30-day volume weighted average price of those shares on the day, while the balance would be paid in cash.

Edited by Tracy Hancock
Creamer Media Contributing Editor

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