Growthpoint acquires Tiber Group for R6.6bn

Growthpoint Properties (GRT) on Monday announced the acquisition of the entire Tiber Group portfolio of properties and management business for R6.6bn.

This is Growthpoint’s largest single acquisition to date and will see the property fund gaining one of the most exclusive property portfolios in South Africa.

Growthpoint will settle the acquisition with a combination of cash and shares. It will issue 93.3-million new Growthpoint shares at R27 per share to raise approximately R2.5bn.

The remaining consideration will be paid by accessing the cash resources from Growthpoint’s successful capital raising in May this year and its existing debt facilities.

The deal‚ which is conditional on competition authorities’ approval‚ among other things‚ is set to boost Growthpoint’s office portfolio and enhance its underlying income streams.

For Tiber‚ the transaction achieves two goals: creating liquidity for Tiber’s shareholders and unlocking the next phase of its business‚ which will continue to deliver “exceptional” property development‚ investment and management to the South African property sector.

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