Indluplace: Group agrees to buy R707.6m portfolio

File picture: James White

File picture: James White

Published Dec 3, 2015

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Johannesburg - Indluplace, the listed residential property-focused real estate investment trust, has agreed to acquire a R707.6 million portfolio of newly built residential properties from global private equity investor International Housing Solutions (IHS).

The acquisition will increase the number of residential units owned by Indluplace to more than 6 300 units from the 3 690 units it owned when it listed in June.

The portfolio comprises of about 1 275 units in nine suburban low-rise developments, with 26 percent located in Western Cape, 25 percent in Mpumalanga and the remainder in Gauteng. They have been acquired from the SA Workforce Housing Fund, a fund managed by IHS. Carel de Wit, the chief financial officer of Indluplace, said yesterday that the acquisition was in line with the group’s strategy to grow its existing residential portfolio aggressively by acquiring yield-enhancing properties.

“This acquisition places Indluplace well on track to meet its aggressive target of doubling the portfolio from the date of listing to R3.2 billion by September 2016,” he said.

De Wit said the portfolio represented good quality, suburban, newly built townhouse-type developments, which complemented Indluplace’s current portfolio of suburban and central business district residential properties and expanded its national footprint.

Shares climbed by 0.45 percent to close at R11.15.

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