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Pangbourne Properties helps beef up iFour portfolio

Posted On Tuesday, 25 May 2004 02:00 Published by eProp Commercial Property News
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Property sale increases retail exposure

Anthony Diepenbroek









LISTED property loan stock company Pangbourne Properties has sold a portfolio of properties housed in a special purpose vehicle called Sipan to fellow property loan stock iFour Properties for R289m.

Pangbourne, which has a stake of about 48% in iFour, manages iFour's property portfolio.

Pangbourne CEO Athol Campbell said yesterday that with a number of new property listings on the JSE Securities Exchange SA in recent months, there had been increasing competition to acquire properties.

Pangbourne bought the properties for cash using its loan facilities.

"We brought the buildings into Pangbourne effective from January 1 this year. IFour could then at its leisure raise the capital as it can go to institutions and say the purchase of the portfolio is definite. Usually the sale is conditional," said Campbell.

In order to purchase the properties iFour has issued listed units underwritten by Pangbourne.

IFour CEO Anthony Diepenbroek said the property deal would boost its market capitalisation to about R869m and increase its property portfolio size to about R1,9bn.

Diepenbroek said the objective of the acquisitions was to improve the quality of the portfolio with better leases, tenants and a greater exposure to retail. Of the eight properties purchased, 60% are retail, 20% high-tech industrial and warehousing, and 20% call centre-related office space.

"We again have grown the portfolio without diluting the yields to unitholders," he said.

Diepenbroek said that through the deal the company had also removed speculation about iFour's financial results for the year ended June 30.

In iFour's announcement on the Stock Exchange News Service yesterday, the company said its distribution to unitholders for the year would be 78c compared with 75c in the previous year. It also forecast distributions of 82c for the year ending June 30 next year.

Diepenbroek said that another reason for the deal with Pangbourne was that it eliminated the risk of diluting iFour's distributions. Dilution could emerge as a result of slow transfers caused by delays in obtaining rates clearance certificates from city councils.

"With Pangbourne paying cash there was no impact on having staggered transfers," Diepenbroek said.

He said iFour would take possession of the properties on June 28 subject to unitholder approval and approval from the Competition Commission.

Mariette Warner, who is the fund manager of the Stanlib Property Income Fund, said that the deal was a "very good way for iFour to have cash available to assemble a portfolio".

Last modified on Saturday, 05 March 2016 02:56

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