Redefine Properties makes maiden offshore property acquisition

Redefine Properties (RDF) has completed its maiden direct offshore property acquisition‚ obtaining a 50% share in the landmark Northpoint Tower located in North Sydney‚ Australia.

For this transaction‚ it partnered with ASX-listed company Cromwell Property Group‚ in which it has a 12.9% direct holding and a further 13.2% indirect holding through Redefine International plc.

The purchase consideration for Northpoint Tower is A$279m which approximates an 8% income yield.

The property is 50% geared and Redefine has funded its equity portion by leveraging its directly held Cromwell shares in Australia. As a result‚ the acquisition will be earnings enhancing for Redefine investors from the initial year of ownership.

Redefine CEO Marc Wainer said a property of this quality‚ which includes the potential for expansion‚ at the sort of yields obtainable in Australia‚ is unmatched in the South African market. Particularly given that Redefine’s average cost of funding this transaction is around 6%.

Northpoint comprises 30‚000m² of offices in an iconic 37 storey office tower. It also includes 5‚000m² retail space and 420 parking bays. It includes an exciting opportunity to expand its retail by a further 5‚000m² and improve the existing retail offering.

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