Arrowhead Properties increased its property assets by acquiring a property enterprise and its related stationary properties situated at the 55‚ 57 and 59 Glover Road‚ Honeypark Extension 20 in Honeydew on the West Rand‚ from Standard Bank at an amount of R150m and the group’s total residential assets would be around R550m after the Jika acquisition.
The stationary properties include 333 residential units, all of them belongs to Monash SA in terms of a triple net lease. Monash in turn enlists the units to those students who attend the university.
Gerald Leissner, the Arrowhead CEO said that this property acquisition promotes the company’s idea of increasing their residential property assets and will give a yield of around 12%.
He said that “We were always interested in grabbing such opportunities which can increases our residential assets and in turn give our unit holders maximum opportunity to further expose in the property market.
According to Arrowhead when 1% of the listed sector is compared with around 15% highly developed markets, this sector was not properly represented in the South African listed sector. This transaction states is conditional to the approval of competition commission and the group hopes the effective date to be 1st Feb, 2014.
