Tower Property Fund launches separate offshore company called TPF International

Posted On Monday, 26 March 2018 21:43 Published by
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Tower Property Fund has announced the launch of a separate offshore company named “TPF International”.

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Marc Edwards, CEO of Tower explains that TPF International will be incorporated in Mauritius as a Category 1 Global Business Licence company, with the intention of listing on the Stock Exchange of Mauritius and the JSE in due course.

“We have embarked on the process of ring-fencing our Croatian properties through TPF International – a move that leverages our existing relationships in Croatia and surrounding countries and allows us to grow Tower’s European exposure and enable TPF International to raise its own capital.”

TPF International’s initial portfolio will comprise Tower’s R1.30 billion (€90.88 million) Croatian property portfolio, made up of four retail properties(two shopping centres and two “Hypermarket” type centres), with retailer Konzum as the head-lease tenant, and the majority of the VMD building, a high-quality office building in Zagreb. Tower will be represented on TPF International’s board through Edwards, who will be a non-executive director. Tower’s regional representative in Croatia, Ivan Bozac, will be the company’s Chief Executive Officer.

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“TPF International’s strategy is to continue to invest in high quality, income producing properties in the retail, industrial and office sectors in Croatia and surrounding countries, facilitated through Tower’s strong relationships in the region,” says Edwards. “The establishment of TPF International will strengthen Tower’s balance sheet (through the Oryx investment detailed below) whilst providing us with the ability to grow our earnings from our Croatian investments.”

“Tower is also very pleased to announce that Oryx Properties Limited, a property loan stock company listed on the Namibian Stock Exchange with a diverse property portfolio valued at approximately $N2.3 billion (R2.3 billion), has committed to invest R300 million in TPF International through, a combination of, the acquisition of TPF International shares from Tower and a subscription for shares in TPF International.”

Edwards advises that TPF International will use the proceeds from the share subscription to fund yield enhancing acquisitions, while Tower intends to use the proceeds from the share sale to strengthen its balance sheet by reducing both Euro and ZAR debt.

“This will give Tower greater flexibility to implement a number of our South African initiatives that promise significant upside for the group and we can repurchase Tower shares, should the purchase price remain attractive.”

“Tower remains committed to our Croatian strategy as it provides us with a hedge against exposure to a single market and will add significant value to shareholders over time. Tower intends to remain a long-term shareholder in TPF International and will continue to provide support to TPF International which will be operated from Mauritius,” concludes Edwards.

Last modified on Monday, 26 March 2018 22:11

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