Fairvest Property Holdings Limited has announced its interest in acquiring a stake in Arrowhead Properties Limited via privately placed share swap transactions.
This decision follows separate approaches from major Arrowhead shareholders requesting Fairvest to consider becoming a shareholder of reference in Arrowhead.
“Following a careful evaluation of the opportunity to acquire a stake in Arrowhead at the behest of its major shareholders, we believe that there is a compelling opportunity to unlock value for the shareholders of Fairvest and Arrowhead” commented Jacques du Toit, Non-Executive Chairman of Fairvest.
Fairvest believes that both sets of shareholders, some holding stakes in both companies, would benefit from the opportunities of a combined portfolio through the access to a larger balance sheet, active asset management activities, further portfolio rationalisation, operational costs efficiencies and a refocused strategy.“This initiative would be the first step in creating a platform for a broader range of investors to access a well rated REIT of scale,”added du Toit.
Fairvest continues to be one of the best performing property stocks in the South African market. In the latest report by the SA REIT Association, Fairvest features as a top three-performer over 1, 3 and 5 years, underscoring its consistent performance over time.
Fairvest CEO Darren Wilder said: “Fairvest’s performance over many years reflects its disciplined strategy and focussed and efficient operations. Fairvest is experienced in managing a geographically dispersed portfolio of assets and has delivered consistent distributions to shareholders, and I believe our track record speaks for itself. We see this as an exciting opportunity to lead a renewed focus on strategy and efficiencies within Arrowhead to unlock sustainable value for shareholders”.
“We look forward to working with the Arrowhead team to determine how we may apply our know-how and successful approach to a much larger portfolio with significant financial strength, and to create what we believe could over time become a compelling investment proposition” he concluded.