Indluplace Properties, the JSE’s first focused residential REIT, has acquired a residential portfolio from Connaught Properties for R420 million.
This acquisition will increase the portfolio to R2 billion. The acquired portfolio comprises nine high rise buildings with a total of 1 180 residential units. This will increase Indluplace’s total number of assets to 104 properties with 4 870 individual residential rental units. The portfolio will be acquired at an estimated forward yield of 10.5%.
Carel de Wit, FD of Indluplace, said: “The acquisition broadens our portfolio with revenue enhancing properties. The properties offer an affordable and convenient quality rental offering as they are ideally placed near transit hubs in Johannesburg.”
The portfolio will be managed by the existing property managers. This will ensure continuity of this well managed portfolio.
Carel de Wit said: “The Connaught acquisition is the first in a series of residential property acquisitions planned for Indluplace. As the portfolio grows, the increased number of well managed individual residential units substantially reduces risk. We believe there are very attractive opportunities in this market segment that offer above-average returns for our shareholders.”