Vividend Income Fund acquires new property

Posted On Tuesday, 23 October 2012 10:10 Published by eProp Commercial Property News
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Vividend Income Fund has entered into an agreement with Fortress Income 3 (Pty) Ltd to acquire the property and associated letting enterprise commonly known as Continuity SA ("the Continuity SA Property") situated at 308 Kent Avenue Ferndale Randburg ('the Continuity SA Acquisition").

Property-Housing-ResidentialThe effective date of the Continuity SA Acquisition shall be the date of transfer of the Continuity SA Property into the name of the company, which, subject to fulfilment of the conditions precedent, is expected on or about 1 March 2013.

Rationale of the acquisition
The Continuity SA Acquisition is consistent with Vividend's strategy of identifying and acquiring properties that have free cash flow yields that provide adequate value enhancement to linked unitholders from the effective date of their acquisition. The Continuity SA Acquisition provides further quality, stability, longevity and growth potential to the company's earnings by introducing a well established, single tenanted property with a low risk, medium-term lease into the company's lease profile.

Purchase consideration
The purchase consideration applicable to the Continuity SA Acquisition is R56 500 000 payable in cash against transfer of the Continuity SA Property into the name of the company. The company will fund the purchase consideration through a combination of debt financing and new equity raised from new and/or existing linked unitholders. Details of the debt financing and equity raising will be announced in due course.

Last modified on Friday, 18 April 2014 19:19

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