Fairvest makes overture to Arrowhead


Fairvest makes overture to Arrowhead


Published Date: 2021-04-30 | Source: Stephen Gunnion | Author: Stephen Gunnion

Fairvest makes overture to Arrowhead

The property investor says it received separate approaches from Arrowhead investors to take a stake in the fund.

Fairvest Property Holdings may acquire shares in Arrowhead Properties after it received separate approaches from Arrowhead investors to become a shareholder of reference. It says the move is aimed at unlocking value for shareholders of both companies.

In a cautionary announcement, the fund said it was engaging, on a select basis, with certain shareholders with a view to acquiring Arrowhead B ordinary shares in exchange for newly issued Fairvest shares. However, at this stage it said it was not making a general offer to Arrowhead shareholders or any offer of Fairvest shares to the public. It said the outcome of engagements with Arrowhead shareholders and Arrowhead would determine how it planned to proceed.

Fairvest's investment property portfolio comprises 42 commercial properties and is currently valued at R3.16-billion. It invests mainly in grocery anchored shopping centres in non-metropolitan areas servicing lower-LSM markets.

Arrowhead has a R9.7 billion portfolio of retail, office and industrial properties. It holds a 60% stake in subsidiary Indluplace Properties, which owns a portfolio of residential properties. It also has minority stakes in Rebosis Property Fund and Dipula Income Fund.

Fairvest's shares closed 0.5% down at R1.87 yesterday while Arrowhead's B shares rose 3.5% to R3.26.


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