SA Corporate Real Estate: Acquisition of Afhco takes effect


Listed property company SA Corporate Real Estate’s acquisition of Johannesburg residential conversion and inner city improvement company Afhco Holdings took effect yesterday. This follows the fulfilment of all the suspensive conditions, including the unconditional approval of the Competition Tribunal. The Afhco portfolio acquired has been revised to exclude the R25.6 million Elgin Court property and will now comprise 26 properties valued at about R928m. The original purchase consideration before any purchase price adjustments of R278.5m, which was determined based on a portfolio value of R953m and Afhco group debt of R675m, has therefore been reduced to about R266.2m. The portfolio was acquired from Afhco shareholders comprising the IDEAS Managed Fund, a policy product of Old Mutual Life Assurance South Africa (50 percent); Wayne Plit (35.5 percent); and Renney Plit (14.5 percent). SA Corporate said it had also purchased the entire share capital of Cross Atlantic Properties 117, the owner of Stuttafords House in the Johannesburg inner city, from the Plit brothers for R35m. It plans to develop 181 residential units across the nine upper floors of the building. – Roy Cokayne


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