Indluplace Properties, the first residential property focused Real Estate Investment Trust to list on the JSE’s Main Board in 2015, will pay a clean-out distribution of 7.7356 cents per share on July 31, ahead of its delisting.
SA Corporate Real Estate Limited and Indluplace said in a joint statement yesterday that, all conditions precedent for the scheme of arrangement for SA Corporate to acquire the entire share capital of Indluplace had been met.
Indluplace owns more than 9000 residential apartments in Gauteng, Mpumalanga, KwaZulu-Natal and the Free State. SA Corporate’s portfolio consists of 157 industrial, retail and residential properties, with 1 350 666 square metres of gross lettable area valued at R15.2 billion, a 50% joint venture interest in three Zambian entities with properties valued at R1.4bn and listed investments of R169 million.
Indluplace’s clean-out distribution was for the period starting on October 1, 2022, and ending on June 30, 2023, with July 1, 2023, being the commercial effective date of the scheme. The clean-out distribution was determined from a deduction from the distributable income for the period, consideration of the agreed reserves; and all transaction costs of the clean-out distribution.
Indluplace’s distributable income amounted to R80.12m, transactions costs came to R15m and the total distributable income came to R95.12m. The agreed reserves came to R70.78m, while the amount available for distribution came to R24.34m.
Indluplace is expected to delist on August 1. The share was untraded at R3.39 yesterday. SA Corporate acquired the shares of Indluplace at R3.40 each, which represented a 12.8% premium to Indpluplace’s 30 average share price to March 13, when the offer was made.
The deal makes SA Corporate one of the largest listed residential property portfolios of 19 268 units valued at R7.9bn.
SA Corporate said in a pre-close statement at the end of last month that it expected its distribution for the six months to June 30, 2023, to be similar to that of the second half of 2022, and to increase by between 12% to 14% over the first half of 2022. It anticipated its loan to value ratio as at June 2023, to be 37%, lower than 38.1% as at December 31, 2022
BUSINESS REPORT