28 Jan 2013
Arrowhead Properties has concluded an agreement to acquire Indite Property Fund, a 100 percent black owned and black managed property fund, as part of their growth and broader Black Economic Empowerment strategies, aligning the company with the SA Property Charter.
The total purchase consideration of the portfolio is R178 million, which will be settled with a combination of Arrowhead units and cash.
Indite’s portfolio consists of six buildings with a combined gross lettable area of 17 000 square metres located in Gauteng, Free State, KwaZulu-Natal and the North West Province.
Upon finalisation of the transaction, Arrowhead will transfer its government tenanted buildings, valued at around R390 million, into the Indite portfolio which will be externally managed by a 100 percent black-owned asset manager, Indite Manco.
This will enable Indite Property Fund to enter into longer term leases with Government.
Imraan Suleman, CFO of Arrowhead explains that this transaction shows the Company’s commitment to meet the provisions of the Property Charter in the areas of ownership, executive management, procurement, transfer of skills as well as enterprise development.
“We will continue to strive for transformation in South Africa and to promote a vibrant growing property sector. In addition, this acquisition will further our objective of acquiring well located and tenanted properties, on a yield enhancing basis” he said.
Thomas Matlala, CEO of Indite Manco commented, “Together with Arrowhead, we see a great opportunity to grow Indite aggressively in the government and parastatal market.
“We are well positioned to capitalise on many opportunities in this growth sector by developing our niche strength as a 100 percent black-managed property fund”
This transaction is in addition to Arrowhead's recently announced acquisition of 15 properties for R489 million.
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