Growthpoint buys Rectron buildings

Growthpoint Properties, the largest listed property company on the JSE, said on Sunday that it had acquired international computer components company Rectron's Gauteng head office and Durban office buildings for altogether R95m.

Rudolf Pienaar, the fund manager for Growthpoint's office portfolio, said the lease-back agreement would result in Growthpoint acquiring Rectron's Midrand property, which consisted of a head office, a substantial sales department, assembly line and distribution facility for R83m, and its smaller Umhlanga property for R12m.

The Umhlanga property consisted of the same business units as in Midrand, but was much smaller.

"We have already taken transfer of the Umhlanga property, and the transfer of the Midrand property is expected in the next few days," said Pienaar.

He said the company had signed 10-year leases on both properties.

"This also a business relationship we are establishing with them.

"We are becoming their preferred property partners, and we will have first right of refusal on any property they might decide to sell," said Pienaar.

"Rectron is a blue-chip IT company, and the two properties we have bought are new and in well-located nodes."

Meanwhile, Stuart Snowball, Growthpoint's chief financial officer, said at the weekend that the main purpose of the further R969m Growthpoint would be accessing from the debt-capital market would be to finance the cash portion of its R1,4bn property acquisition from Tresso Trading 119, conducted earlier this year.

The R969m forms part of the R5bn commercial mortgage-backed securitisation programme.

"We will be making further issues from that programme as we go forward with further acquisitions," said Snowball.

Source: eProp - www.eprop.co.za

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