Growthpoint CEO Norbert Sasse
JSE-listed property giant Growthpoint has acquired Abseq Properties from property managers Equity Estates and Absa Bank for R1.3-billion in shares and cash.
This would add 17 high-quality office properties in northern Johannesburg and Woodmead to Growthpoint’s portfolio, bringing the firm’s consolidated tangible assets to R64-billion.
The collective 79 971 m2 was expected to deliver an average forward yield of 8.74%.
“Growthpoint’s strategy is to acquire quality [retail, office and industrial] property assets [that] offer Growthpoint shareholders sustainable growth in distributable income as well as long-term capital growth,” Growthpoint CEO Norbert Sasse said on Wednesday.
Growthpoint also agreed to absorb the property administration business of Abseq Properties to retain the skills and expertise of the Equity Estates property management team responsible for the portfolio.
The property group expected to conclude the transaction during the first quarter of 2014 after the fulfilment of several conditions, including competition approvals.