Standard Bank Group has concluded a R500-million debt transaction for JSE-listed property fund Ascension Properties.
Ascension, which listed on the JSE in June 2012, is one of a number of real estate listings on the JSE over the past two years. The company is a property income fund focused on commercial office buildings in South Africa, with a strong emphasis on government and other empowerment sensitive tenants.
The debt package facilitated the acquisition of six commercial properties by Ascension from JSE listed Capital Property Fund. The properties are situated across the country and were purchased for a total consideration of R989-million. Through this transaction, Ascension has increased the value of its property portfolio to over R2 billion and has resulted in Standard Bank becoming the largest lender to the fund.
Shaun Rai of Ascension says: “We are pleased with the outcome of this transaction which is very much in line with our continued growth strategy. The assets acquired will enhance the quality and diversity of our portfolio.”
“We are delighted to partner with a dynamic company like Ascension that is well positioned to continue to grow their property portfolio” says Musyoki Mutisya, Manager at Standard Bank Group’s Real Estate Finance division.
For more on Standard Bank Group’s property finance services visit www.standardbank.com/cib.