Arrowhead today announced that it has concluded an agreement to acquire 84 966 285 Vividend Income Fund (“Vividend”) linked units representing 31.7% of the total Vividend linked units from Coronation Fund Managers.
The acquisition is unconditional and the purchase price will be discharged by the allotment and issue of 31 777 391 Arrowhead A and B linked units respectively payable on 13 December 2013.
Mark Kaplan, COO of Arrowhead Properties commented, “This transaction is in line with our strategy of only making yield enhancing acquisitions and diversifying risk through acquisitions. It provides Arrowhead with a strategic stake in, and indirect exposure to, Vividend’s R2 billion portfolio which we believe holds significant value and growth potential.”
Vividend’s portfolio comprises of retail and commercial properties located in various locations around South Africa. Arrowhead owns a diverse portfolio of retail, commercial and industrial properties in secondary locations throughout South Africa at a value of approximately R3 billion.
“We have always diligently adhered to our stated objective of only making acquisitions that will enhance distributions and as such we believe that the synergies between Arrowhead and Vividend will deliver.
“We intend to continue looking for opportunities that complement our growth strategy be it through acquisitions or further investments. Increasing critical mass, asset quality and diversification will also drive performance,” Kaplan concluded.