Arrowhead Properties enhances Residential Portfolio

Posted On Monday, 09 December 2013 15:34 Published by eProp Commercial Property News
Rate this item
(0 votes)

Arrowhead Properties today announced that it has concluded an agreement with Standard Bank for the acquisition of 333 residential units at an aggregate purchase consideration of R150 million payable in cash.

Gerald LeissnerAll the units are let to Monash South Africa Limited on a triple net lease. Monash in turn sub-lets the units to students who attend the university.

"This acquisition furthers Arrowhead's strategy of expanding its residential property portfolio and, at a forward yield of approximately 12%, is in line with our focus on distribution enhancing acquisitions," commented Gerald Leissner, CEO of Arrowhead.

"It has significantly enhanced our residential portfolio offering at rental of R5 982 per unit. The triple let lease and the fact that there is in essence only one tenant from our perspective makes this an extremely attractive investment," he added.

This is Arrowhead's second major residential acquisition, which together with the previously announced Jika portfolio, takes the combined residential portfolio to approximately R550 million. Since listing on the JSE in December 2011, Arrowhead has grown its asset value from R1.4 billion to R4 billion.

The transaction is subject to competition commission approval and Arrowhead expects the effective date to be 1 February 2014.

Last modified on Friday, 18 April 2014 09:17

Most Popular

Pam Golding Properties achieves record price of USD13.6m for sale of luxury home in Mauritius

Mar 12, 2024
Villa sold for USD13.6m Mauritius, patio & pool
The Mauritius office of Pam Golding Properties has sold a six-bedroom, luxury beachfront…

Simplified capital structure and operational performance delivers strong 1H2024 results for Fortress Real Estate Investments

Mar 12, 2024
Cornubia Ridge LP_March 2024
Fortress Real Estate Investments delivers strong 1H2024 results: Simplified capital…

Dipula and REO’s innovative approach to tenant installation for EOH grows a sustainable furniture initiative

Mar 12, 2024
Interior EOH in Montrose Place at Waterfall Park in Midrand 3
Dipula Income Fund’s new lease with EOH for the Montrose Place at Waterfall Park in…

Please publish modules in offcanvas position.