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Ingenuity acquires 9 prime Cape Town properties for R866m
INGENUITY PROPERTY INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2000/018084/06)
ISIN: ZAE000127411 JSE share code: ING
(“Ingenuity” or “the Company”)
Ingenuity acquires 9 prime Cape Town properties for R866m
Western Cape-based, JSE- listed property investment and development company, Ingenuity Property
Investments Ltd, is acquiring nine additional prime Cape Town properties for a total consideration of
around R866million. Transfer is expected on 1 September 2013.
These fully tenanted retail and commercial properties include five buildings in Century City, two in
Claremont and two in Tokai and will boost Ingenuity’s property portfolio to over R2billion.
The Century City properties, which are all in prime positions, are Aurecon, the regional headquarters
of a global engineering group and the first Five Star Green Star rated building in South Africa;
Estuaries 1, which is tenanted by IBM; Gateway, which is tenanted by SMG/BMW motor dealership,
Moore Stephens accountancy firm and Symantec; Mazars House, which is tenanted by a global
accounting group and the state-of-the-art new generation Virgin Active Health Club.
The other properties comprise a 50% stake in Tokai on Main Office Park and Tokai On Main
Shopping Centre with anchor tenants being Fruit and Veg City and Sportsmans Warehouse, a 66,6%
stake in Palmyra Junction shopping centre in Claremont and Ingenuity’s head office in Intaba
Building in Claremont which they have been renting to date.
The properties have been acquired from the Century City Property Investment Trust (CCPIT), the
property investment arm of the directors of the Rabie Property Group, and their partners in the various
developments.
Arnold Maresky, CEO of Ingenuity, said the acquisitions would be financed by borrowings and a
vendor placement of shares. In part consideration of the sale, CCPIT would be issued with 200million
shares at 85c share.
“This is a huge vote of confidence from one of the country’s leading developers both in terms of the
quality of our portfolio and in Ingenuity’s ability to add value.”
Maresky said they had very close working relationship with the Rabie Property Group, the developers
of Century City and the properties now being acquired, and these transactions would further align
them strategically and cement their relationship thus providing a pipeline to further investment
opportunities.
“These acquisitions, which give us a significant entry into the burgeoning Century City mixed use
precinct where total investment to date has exceeded around R18billion and which is continuing to
outperform the market, will solidify our Western Cape focused investment portfolio.
“They are all new generation, modern properties with long term leases – with the average lease
period exceeding 7 years – and blue chip national tenants which will further enhance and underpin
our already strong income stream going forward.”
Maresky said the transaction was expected to significantly enhance shareholder value and would
improve their ability to enhance dividend distribution.
“The deal also balances the portfolio better and reduces the weighting of development type assets
relative to pure income producing investments. The substantial income base allows us to further
extract value from existing development opportunities in the Company without having to take on too
much debt. Total development opportunities in the fund still exceed R1billion.”
Ingenuity recently completed a third office block in its prestigious Santam office park in Tygervalley at
a cost of R215million as well as the R65million redevelopment of Newspaper House in the Cape
Town CBD which included transforming the ground floor of the building into a walk through retail mall
tenanted by Food Lover’s Market on a 10 year lease. Its latest development, Atlantic Centre, situated
in the Culomborg precinct on the Foreshore of Cape Town, is due for completion this month. The total
Capital expenditure of this project is R155million. The building will comprise 10 500sqm of premium
grade offices.
Rodney Squire-Howe, Chairman of Ingenuity, said this acquisition, which follows the completion of
major quality developments over the past five years, was in line with Ingenuity's strategy to
assemble a portfolio of quality Cape properties offering investors an unique opportunity via the JSE.
“We remain focussed in our strategy and continue to invest in the Western Cape. The Company will
continue to grow through development and we will target prime income producing buildings that will
enhance shareholder value. We are confident that this niched focus will bear fruit for our
shareholders,” added Maresky.
Issued for Ingenuity Property Investments by Maggie Rowley on 0824538884
For further details contact Arnold Maresky on 021 674 5170.
08 April 2013
Sponsor
Nedbank Capital
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