Growthpoint Properties Ltd. would become the largest shareholder in two real estate firms in South Africa. This was after the real estate firms in South Africa had been looking out to expand its business through offering products in the business and office markets.
In a statement released today, Growthpoint indicated that it would purchase 34.9 percent holdings in Acucap Properties Ltd. It was also stated that the Johannesburg based company would acquire 31.5 percent stake in Sycom Property Fund. The acquisition was a part of share-swap deal valued USD444 million, reported Bloomberg.
The share-swap deal would allow Growthpoint to gain access in South Africa’s office and retail real estate markets valued ZAR18.4 billion, said a Bloomberg report.
Grindrod Asset Management’s Geoff Noble said, “The past few years, we have had a listing boom and it’s natural for consolidation to happen. The bigger the entity, the more favorable rates they have from financial institutions.”
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