JSE-listed Tower Property Fund will gain significant exposure to the industrial property sector through the R190.75-million acquisition of HTP Holdings.
Tower reported on Tuesday that it had entered into an agreement to acquire the entire issued share capital of and claims against HTP Holdings for eight industrial properties. The properties were situated in desirable locations in Gauteng and KwaZulu-Natal.
Once the deal was finalised, Tower’s industrial portfolio would represent 12% of its overall portfolio, compared with the current 0.9%.
The effective date of the acquisition was April 1. The purchase consideration would be settled through cash payments of R3.75-million; R450 000 in the allotment and issue of 4.94-million Tower shares at a price of R9.10 and R142-million through the allotment and issue of Tower shares pursuant to a private placement.
The acquisition remained conditional upon approval by the competition authorities and on Tower procuring a bank guarantee up to a maximum of R185-million for the repayment of amounts owed by HTP to banking firms Nedbank and Investec.