Fairvest to acquire control of Diepkloof properties

FAIRVEST, the listed property company, had agreed to acquire a controlling stake in Bara Precinct, which owns several properties in Diepkloof collectively valued at R322.43 million.

The company said yesterday that the acquisition was in line with its strategy of acquiring assets servicing the lower living standards measure market located in non-metropolitan areas and rural, convenience and community shopping centres located in high-growth nodes, close to commuter networks, with a view to providing shareholders with attractive returns and distinctive diversified opportunities.

The properties in the Bara Precinct included in the transaction are a mix of freehold and leasehold properties, and the transaction involves the Buffet Group.

They include the 4 082m² Diepkloof Hotel, the 1 385m² Soccer Centre, the 6 991m² Blackchain Centre, the 3 200m² Bara Square, the 3 658m² JPC Centre, the 3 470m² Toby Centre and 551m² Mogai Centre.

Fairvest, in terms of the transaction, would subscribe Bara Precinct A-shares and own 50.17 percent of all the Bara Precinct shares in issue.

Newco, which together with Baraprop Investments, Buffshelfco 40 and Bara Precinct all form part of the Buffet Group, would acquire Bara Precinct shares and own 49.73 percent of all the Bara Precinct in issue. The subscription consideration due by Fairvest was expected to amount to R82.54m and that of Newco to about R81.9m.