The board of directors of Texton is pleased to advise shareholders of the Company (“Shareholders”) that it has concluded agreements with various vendors to acquire two property portfolios, underpinned by strong contractual cash flows, in South Africa (“SA Acquisition”) and in the United Kingdom (“UK Acquisition”) (collectively, the “Acquisitions”) for a gross purchase consideration of R863.4 million at a yield of 9.61% in SA and 6.95% in the UK, comprising:
– R363.0 million for the SA Acquisition; and
– £21.98 million (R500.4 million converted at a spot exchange rate as at 26 May 2016 of £1:R22.7672) for the UK Acquisition
The Acquisitions comprise quality income producing properties that complement Texton’s existing portfolio and allows the Company to continue to follow its clearly defined strategy of acquiring accretive properties, improving the overall quality of the portfolio whilst diversifying its portfolio beyond the South African borders into the UK. This acquisition is weighted by value towards the UK and moves the portfolio geographical split by value to 55:45 in South Africa and the UK, respectively.
The details pertaining to the Acquisitions are set out in the section B below. As a result of Texton’s defined strategy of ensuring a diversification of its portfolio into the UK, Texton has ensured that the Acquisitions are inter-conditional on each other.
The effective date of the Acquisitions will be the earlier of transfer date or 1 0ctober 2016.
Read more here: SENS_20160527_S372127.pdf – Acquisition Of Properties
