Growthpoint to participate in Aus subsidiary’s rights offer
JSE-listed Growthpoint Properties will take up its rights in ASX-listed Growthpoint Properties Australia’s (GOZ’s) A$125-million rights issue to partly fund its acquisition of the New South Wales Police headquarters for R241.1-million.
At 64.03%, Growthpoint is the major security holder in GOZ.
Growthpoint would take up its full entitlement under the rights offer, which equated to some A$80-million, at an “attractive” distribution-a-share yield of 8.2%.
“Our investment in GOZ remains strategic for Growthpoint in the present environment. Our decision to take up our full entitlement in the rights offer is in line with our objective of supporting the continued growth of GOZ and is an attractive investment opportunity that will deliver a quality return,” commented Growthpoint Properties executive director Estienne de Klerk.
The acquisition would strategically increase GOZ’s exposure to New South Wales and furthered its objective of diversifying its high-quality portfolio.
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