Pretoria - Listed property fund Accelerate has concluded a pre-agreement to acquire a portfolio of offshore properties in Austria and Slovakia for £82.1 million (R1.4 billion) and plans in the future to seek an independent listing on a “recognised stock exchange” for its European operations.
The pre-agreement was signed with Supernova Privatstiftung Group. In terms of the agreement, Accelerate will acquire a portfolio of nine retail warehouse properties tenanted by OBI, one of the largest specialist do-it-yourself retailers in central and eastern Europe with total annual revenues of more than £4.37bn (R66.38bn) and earnings before interest, tax, depreciation and amortisation of more than £265m.
Six of the properties are in Austria and three in Slovakia.
Accelerate said on Monday that, subject to market conditions, it would seek to create an independent listing for Accelerate Europe on a recognised stock exchange once the appropriate scale and asset/country diversification was achieved.
This listing would provide Accelerate and its shareholders with an opportunity to realise significant benefits from the further capitalisation rate compression on Accelerate Europe’s future acquisitions and developments.
BUSINESS REPORT