Full details of the Ambit property portfolio have been published in a SENS announcement. Click here to download the announcement and portfolio details.

The Ambit portfolio comprises 10 retail properties with a gross lettable area (GLA) of 77 423m2, valued at R840-million at 30 September 2008, while the office component comprises 20 office buildings with a GLA of 163 477m2, valued at R1,4-billion. There are also 10 industrial properties valued at R231-million with a GLA of 72 890m2.

After the acquisition, the office component of the ApexHi portfolio will increase from 39% to 40%, retail will decrease from 39% to 37% and industrial will increase from 22% to 23%, which is an appropriate sectoral spread in the current economic environment.

The Ambit portfolio only has a vacancy of 2,3%, and the acquisition is yield enhancing for ApexHi. 

Should the acquisition be successful, ApexHi has concluded an agreement with Ambit Management Services (AMS) in which ApexHi has agreed to take cession of the AMS asset management contract in return for a cash consideration of R65-million. On implementation of the acquisition, the AMS agreement will be cancelled and the asset management of Ambit’s portfolio will be undertaken by Madison Property Fund Managers within the existing management contract with ApexHi. Madison has waived its asset management fee in respect of the increased enterprise value of ApexHi resulting from the acquisition.

This acquisition requires the approval of ApexHi unit holders in order to authorise the issue of the consideration units. A circular containing further details of the acquisition will be sent to ApexHi unit holders in due course.