Arrowhead Properties on the way to increase its property assets and has reached an agreement with Sasol Pension Fund to acquire the Sasol Building situated in Rosebank.
The acquisition will be done at R250 million from which R125 million will be paid on hand and issue of 9 259 260 Arrowhead A and B linked units respectively. The transaction is conditional on the competition commission approval, but the group expects it to be on 1 February 2014.
CFO Imraan Suleman from Arrowhead Properties said that “This acquisition is extremely a key addition in our property portfolio. It will also build up the overall quality of our assets and will surely yield 15% which is rather a strong income returns and long term capital growth.”
The lease term will end in December 2016, till than Sasol will give up the premises. Moreover Arrowhead is confident that this building is more than capable for being rented or leased and will pay reward if any negative reactions output are there.
Suleman concluded by saying “Not looking more at the size and the quality of the building, we believe that Rosebank office is rather life giving. Many new retail and office developments in the area can be expected in the area which will be supported by the surrounding residential growth and the Gautrain station. Soon it will be the third high-rise business centre in the city after Sandton and the inner city.
