Growthpoint Properties Ltd., South Africa’s biggest property company, is to acquire Tiber Group’s entire real estate portfolio for 6.6 billion rand ($650 million) to expand its commercial property presence.
The proposal gives Growthpoint more than 308,100 square meters (3.3 million square feet) of office and commercial real estate mostly in Johannesburg’s northern suburbs as well as Tiber’s management business, the Johannesburg-based company said in a statement today.
“The property transaction presents an opportunity to acquire arguably one of the finest office property portfolios in South Africa in terms of location and scale supported by long-weighted average lease expiries and a quality underlying tenant base,” the company said.
The income-producing properties will have a yield of 7.41 percent after real-estate asset-management fees, the company said. Growthpoint will also acquire 48,000 square meters of undeveloped land and a 50 percent interest in a 19,200 square meter development project.