GoGlobal concludes GBP17m acquisition deal

GoGlobal Properties (GGP) on Tuesday advised that it has concluded an agreement to acquire the entire issued share capital of APF1‚ a subsidiary of real estate investment fund‚ ApexHi Property‚ for the sum of £17.034‚603m.

The company said the transaction would be settled through the issue of 15‚486‚003 GoGlobal shares at an issue price of £1.10 per share.

The portfolio acquired comprises eight commercial properties in the UK with a combined value £27.5m. External debt of the properties‚ which have an average unexpired lease term of 6.8 years‚ stands at £10.4m.

The group believes the acquisition of the APF1 portfolio represents a sound initial acquisition of higher yielding properties.

“A more positive outlook for the UK economy and occupier markets‚ coupled with the fact that the opportunity to acquire prime properties has diminished‚ given the relative unattractiveness of prime yields‚ means that the appetite for secondary property assets should continue to grow‚” GoGlobal properties said in a statement late on Tuesday.

“There is a potential for the portfolio to benefit from improved pricing conditions in the UK over the short term which may allow GoGlobal the opportunity to continue to acquire attractively priced assets‚ through the issue of equity and so improve its income return to shareholders‚” it said.

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