Growthpoint Properties receives a US$546m offer to sell real estate assets in Europe

SOUTH AFRICA Growthpoint Properties, one of South Africa’s largest real estate investment companies, has received an offer to sell the 65.2 million shares, representing its 29.5% stake in a London-listed real estate company active in Central and Eastern Europe.

Growthpoint Properties manages a portfolio of more than 500 properties in Europe, Australia, and South Africa,

Two Luxembourg companies made the offer, Aroundtown South Africa, and CPI Property Group South Africa, which own 51.5% of Globalworth Real Estate Investments Limited (Gwi).

The two investors are offering €7 (US$8.4) for each share of Growthpoint, hoping to increase their stake in this commercial real estate asset management company, whose global portfolio was valued at around €3 billion (US$3.6 billion) as of December 31, 2020.

“Growthpoint Properties manages a portfolio of more than 500 properties in Europe, Australia, and South Africa”

According to a note published on the Johannesburg Stock Exchange (JSE), if Growthpoint decides to accept the offer, based on the proposed price and the exchange rate, the value of the transaction will be around US$553 million, or 17.64% of Growthpoint’s current market capitalization.

Growthpoint is the largest South African primary listed REIT and is well on its way to becoming a leading international property company.

The Johannesburg Stock Exchange listed company  provides space to thrive with innovative and sustainable property solutions in a diversified portfolio of 533 properties it owns and manages, including 473 properties in South Africa, 59 properties in Australia through its investment in Australian Stock Exchange listed Growthpoint Properties Australia and a 50% interest in the properties of the V&A Waterfront, Cape Town.

It also owns a 26.9% stake in the €1billion (US$1.2 billion) property portfolio of London Stock Exchange Alternative Investment Market listed Globalworth Real Estate Investment, the largest owner of office space in Romania.

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