JSE-listed property company Arrowhead (AWA‚ AWB) is set to increase its market capitalisation “by more than 150%” on the back of a strong acquisition drive‚ the company said on Monday.
Since listing in December 2011‚ the company has acquired an aggregate portfolio of 16 properties‚ with a combined market value of over R820 million.
“Since listing‚ and once the properties have transferred‚ we would have grown the value of our property portfolio to over R2.3 billion. These acquisitions are in line with our strategy to own a diversified portfolio of high-yielding properties‚” said Mark Kaplan‚ chief operating officer.
The acquisitions will be funded through the issue of Arrowhead A and B linked units‚ which should “significantly enhance Arrowhead’s liquidity”‚ the company said.
“Our market capitalisation at listing in December 2011 was just under R800 million. Based on a combined A and B unit closing price on Friday July 6 of around R11.75‚ our current market capitalisation will be in excess of R2 billion – a 150% increase within the first year as a public company.
“With a 29% loan-to-value ratio once these acquisitions are implemented‚ we still have significant headroom for growth‚” Kaplan said.
Arrowhead has recently obtained Competition Commission approval to acquire a portfolio consisting of eight commercial buildings from Growthpoint Properties for R167.6 million.
The buildings are located in Sunninghill‚ Sandton; Bruma‚ Johannesburg; Fourways‚ Sandton; Pretoria’s CBD; Goodwood‚ Cape Town; Meyersdal‚ Alberton; Westville‚ Durban; and Bryanston‚ Sandton - measuring 16‚699 square meters in total. - I-Net Bridge