Emira Property Fund has taken a 20,17% stake in Octodec, the JSE-listed REIT that owns extensive retail and residential spaces in the Johannesburg and Tshwane CBD
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Emira Property Fund has advanced its investment strategy by acquiring 53.7 million shares in Octodec Investments, or about 20.17% ownership, involving an investment of R891.8 million in a series of off-market transactions, Emira announced Monday in a statement.
The shares were acquired from various asset managers, including Abax Investments, Sanlam, and Old Mutual, making this a pivotal moment for both entities.
The deal underscores Emira's strategy of seeking meaningful, value-accretive opportunities within the real estate market. The aim was to increase their stake to at least 34,9%, which is below the level where an offer to the public has to be made.
"We aim to create substantial value in the long term.” This acquisition was not just about enhancing shareholding; Emira aimed to engage with Octodec on initiatives aimed at maximising portfolio value.
"Emira considers an investment in Octodec to be consistent with its investment strategy of deploying capital into meaningful, value accretive opportunities, specifically by acquiring strategic, cornerstone stakes in listed and unlisted property companies at discounts to the reported value of their underlying property portfolios," the company said.
Emira has announced a voluntary offer to acquire an additional 39.2 million in Octodec for R16.75 per share. Should this offer be fully accepted, Emira's total shareholding could rise to nearly 34.9% of Octodec shares.
Octodec boasts a diversified portfolio of 219 properties, mainly in the Johannesburg and Tshwane central business districts, valued at R11.2 billion, encompassing residential, retail, office, and industrial spaces.
Emira's share price increased 2.1% to R15 late Monday o the JSE, while Octodec's share price ratcheted up 2.13% to R16.75.
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