ApexHi in bid to create R11,7bn porfolio
2009-03-20 · Property Market Reports
LISTED property loan stock company ApexHi Properties hopes to create an R11,7bn portfolio if its bid to acquire all the linked units in Ambit Properties succeeds.
ApexHi is the second-largest property company listed on the JSE, with a market capitalisation of R9,5bn and property assets valued at R10bn.
The R2,4bn Ambit portfolio consists of 10 retail properties with a gross lettable area (GLA) of 77423m² , valued at R840m , while the office component consists of 20 office buildings with a GLA of 163477m² , valued at R1,4bn. Ambit also has 10 industrial properties valued at R231m with a GLA of 72890m² .
After the acquisition, the office component of the ApexHi portfolio would increase from 39% to 40%, but retail would decrease from 39% to 37%. Industrial is expected to increase from 22% to 23%.
The group said yesterday this was an appropriate sectoral spread in the current economic environment. ApexHi said the Ambit portfolio had a vac-ancy factor of only 2,3%.
Should the acquisition be successful, ApexHi has agreed to take cession of the Ambit Management Services (AMS) asset management contract in return for a cash consideration of R65m.
Upon acquisition, the AMS agreement would be cancelled and the asset management of Ambit’s portfolio would be undertaken by Madison Property Fund Managers within the existing management contract with ApexHi.
ApexHi said Madison had waived its asset management fee in respect of the increased enterprise value of ApexHi. In November ApexHi bought a 34,85% interest in Ambit for R597,9m. But for ApexHi to make a successful bid for Ambit, it would have to negotiate with other large unitholders.
ApexHi is the second-largest property company listed on the JSE, with a market capitalisation of R9,5bn and property assets valued at R10bn.
The R2,4bn Ambit portfolio consists of 10 retail properties with a gross lettable area (GLA) of 77423m² , valued at R840m , while the office component consists of 20 office buildings with a GLA of 163477m² , valued at R1,4bn. Ambit also has 10 industrial properties valued at R231m with a GLA of 72890m² .
After the acquisition, the office component of the ApexHi portfolio would increase from 39% to 40%, but retail would decrease from 39% to 37%. Industrial is expected to increase from 22% to 23%.
The group said yesterday this was an appropriate sectoral spread in the current economic environment. ApexHi said the Ambit portfolio had a vac-ancy factor of only 2,3%.
Should the acquisition be successful, ApexHi has agreed to take cession of the Ambit Management Services (AMS) asset management contract in return for a cash consideration of R65m.
Upon acquisition, the AMS agreement would be cancelled and the asset management of Ambit’s portfolio would be undertaken by Madison Property Fund Managers within the existing management contract with ApexHi.
ApexHi said Madison had waived its asset management fee in respect of the increased enterprise value of ApexHi. In November ApexHi bought a 34,85% interest in Ambit for R597,9m. But for ApexHi to make a successful bid for Ambit, it would have to negotiate with other large unitholders.
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