Property company Fairvest Property Holdings has announced its interest in acquiring a stake in Arrowhead Properties through privately placed share swap transactions.
This decision follows a number of separate approaches from major Arrowhead shareholders requesting Fairvest to consider becoming a shareholder of reference in Arrowhead.
“Following a careful evaluation of the opportunity to acquire a stake in Arrowhead at the behest of its major shareholders, we believe there is a compelling opportunity to unlock value for the shareholders of Fairvest and Arrowhead,” says Fairvest nonexecutive chairperson Jacques du Toit.
Fairvest believes both sets of shareholders, some holding stakes in both companies, will benefit from the opportunities of a combined portfolio through the access to a larger balance sheet, active asset management activities, further portfolio rationalisation, operational costs efficiencies and a refocused strategy.
“This initiative would be the first step in creating a platform for a broader range of investors to access a well rated real estate investment trust of scale,” adds Du Toit.
In an industry that has been severely impacted on by the Covid-19 pandemic, Fairvest says that it continues to be one of the best-performing property stocks in the South African market.
In the latest report by the South African Real Estate Investment Trust Association, Fairvest features as a top three performer over one, three and five years, underscoring its consistent performance over time, the company indicated.
Fairvest’s performance over many years reflects its disciplined strategy and focussed and efficient operations. Fairvest is experienced in managing a geographically dispersed portfolio of assets and has delivered consistent distributions to shareholders, and I believe our record speaks for itself.
“We see this as an exciting opportunity to lead a renewed focus on strategy and efficiencies within Arrowhead in order to unlock sustainable value for shareholders.
“We look forward to working with the Arrowhead team to determine how we may apply our know-how and successful approach to a much larger portfolio with significant financial strength, and to create what we believe could over time become a compelling investment proposition,” says Fairvest CEO Darren Wilder.