Vividend buys new properties for R156mComment on this story
Vividend Income Fund (VIF) has entered into an agreement with The Sasol Pension Fund to acquire two Sasol Group tenanted properties and associated letting enterprises in Randburg for R155.6 million.
The properties are situated at 272 Kent Avenue, Ferndale, and 316 Kent Avenue, Ferndale.
The company said on Friday that the acquisition is consistent with Vividend's strategy of identifying and acquiring properties that have free cash flow yields that provide adequate value enhancement to linked unit holders from the effective date of their acquisition.
The Sasol Kent Street acquisition provides further quality, stability, longevity and growth potential to the company's earnings by introducing blue-chip medium-term triple net leases into the company's lease profile, it said.
The purchase consideration is payable in cash and Vividend said it would fund the purchase consideration through a combination of debt financing and new equity raised from new and existing linked unitholders.
The acquisition is subject to conditions, including the satisfactory completion of a due diligence investigation, approval from the trustees of The Sasol Pension Fund, Vividend obtaining the appropriate irrevocable funding commitments from existing or new debt funders and Competition Commission approval.
Vividend advised linked unitholders to exercise caution when dealing in the company's securities until a full announcement regarding the pro forma financial effects and the forecast financial information in relation to the acquisition is made. - I-Net Bridge