Ambit acquires 34 properties for R508m

Posted On Wednesday, 14 January 2004 02:00 Published by eProp Commercial Property News
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Pretoria - Ambit Properties, a joint initiative of Absa Commercial Property Finance and Marriott Holdings due to be listed next month on the JSE Securities Exchange, has acquired a portfolio of 34 local properties at a cost of R508.35 million.


Property-Housing-ResidentialIt has also acquired a stake in Oryx Properties, a listed Namibian property company, by purchasing linked units in Oryx equal to 28.87 percent of the total issued units for R62.87 million, which would be settled in full by the issue of Ambit units.

Nick Harris, Ambit's chief executive, said the cross-border exposure had enabled Ambit "to diversify our investments from the current property investment hot house in South Africa and find quality assets with good growth prospects at an attractive yield".

However, Ambit intended to hold not more than 30 percent of its total assets outside South Africa, with a long-term target of 25 percent, while its debt profile would be limited to 50 percent of the total asset value but managed to be between 30 percent and 50 percent.


Harris said investments by Ambit - due to be listed in the real estate sector of the JSE on February 4 at R2, giving the company a market capitalisation of R310 million - would provide investors with sustainable, growing income streams and capital appreciation.

He said the forward yield was forecast at 12.75 percent, with projected growth at 5 percent a year for the next two to three years.

Ambit's portfolio was predominantly A- and B-grade, with 64 percent of the properties located in Gauteng, 14 percent in Durban, 6 percent in Cape Town and the balance predominantly in Maritzburg.

Harris said 57 percent of the portfolio was retail, 31 percent commercial and 12 percent industrial. It had a vacancy of 2 percent with a good lease expiry profile.

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