Capital director Andrew Teixeira says ideally about R1,4bn of properties needs to be added to the portfolio every year to refresh the portfolio and improve the gearing ratio from the current 25% to 30%

Capital Property Fund says its merger with Pangbourne has allowed it to focus on new developments to grow and rejuvenate its portfolio.

Capital Property Fund has entered into an agreement with Panya Investments in term of which it will acquire 23.7 million linked units in Pangbourne Properties for R405m.

Capital Property Fund and Pangbourne Properties have brought to finality all outstanding conditions relating to their tie-up deal.

Capital Property Fund and Pangbourne Properties said on Thursday they had received approvals from both the Competition Tribunal and South Gauteng High Court for their tie-up deal.

Pangbourne Properties announced on Monday that its unitholders had approved an offer by Capital Property Fund to buy its entire issued capital.

Pangbourne Properties announced a 5.47% rise in distribution to 74.04 cents per linked unit for the six months ended December from the previous corresponding period.

Capital Property Fund’s planned acquisition of Pangbourne Properties is expected to see earnings drop 20,87% to 29,66c for the six months to June.

Capital Property Fund ’s planned acquisition of property loan stock company Pangbourne Properties will result in it becoming the third-largest SA listed property fund.

Pangbourne Properties has reported that its total distribution for the year to end June was 147.08c per linked unit.