Ingenuity‚ whose share price has risen 36% over the past 12 months‚ said the properties were purchased as part of it strategy to build a quality portfolio of assets focused in the Western Cape.
The company derives its revenue predominantly from office and retail properties.
The properties include the single-tenanted 14 Dreyer Street‚ Claremont‚ with retail and office space‚ and 72 Main Road‚ Claremont‚ which is a multi-tenanted property.
The 14 Dreyer Street property's weighted average net rental per square metre is R76.24‚ while the 72 Main Road property's weighted average net rental per square metre is R94.03.
Based on Ingenuity's results for the year ended August 31‚ the acquisition would increase the company's headline earnings per share
The purchase price will be settled through the issue of a renounceable letter of allotment by Ingenuity to Annenprop to the value of 50% of the purchase price. Annenprop is obliged to renounce the consideration shares to a renouncee‚ while the payment of the balance will be in cash.
The acquisition is effective on transfer, expected to be on or about March 1.
The deal is subject to various conditions‚ including securing mortgage finance and regulatory requirements.
Ingenuity grew its core asset base by 24% over the year to August 31‚ "and embarked on further developments that when completed will add R500m to the asset base".
Revenue increased to R71.9m for the year‚ compared with R59.1m previously.
The company said in its results that it was well positioned for growth "with additional exciting opportunities to grow the business"‚ and with a goal to create an enduring long-term business.
Ingenuity said three developments‚ namely the redevelopment of Newspaper House in St Georges Mall‚ Cape Town; the redevelopment of Atlantic Centre in Culemborg on the Foreshore‚ Cape Town; and the development of a third building on the Santam site in Tyger Valley‚ would all be completed in the current financial year "and will substantially enhance our net rental base".
Source: AFP via I-Net Bridge
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