Investec CM refinances Growthpoint BEE debt

Investec CM refinances Growthpoint BEE debt

Provides R888.5m of funding to settle the existing banks' exposure.
Johannesburg, Nov 16 (I-Net Bridge) - The AMU Trust, Growthpoint Properties Limited's largest BEE shareholder has refinanced debt raised in 2005 to fund the acquisition of 100 million Growthpoint Properties linked units as part of the company's landmark BEE transaction.

Investec Capital Markets has provided R888.5 million of funding to settle the existing banks' exposure and to partially reduce Growthpoint's mezzanine debt participation from R500 million to R200 million, thereby repaying R300 million to Growthpoint. This is being provided as a 4-year capital bullet facility.

The AMU Trust owns approximately 5.7% of Growthpoint Properties, worth approximately R1.8 billion, and represents the interests of Amabubesi Investments, Miganu Investment Holdings and Unipalm Investment Holdings.

"Investec welcomed the opportunity to participate in the funding and structuring of the transaction, enabling AMU to take advantage of the lower interest rate environment, provide funding flexibility and value extraction," said Rick Lupini of Investec Capital Markets in Cape Town.

Norbert Sasse, Chief Executive Officer of Growthpoint Properties Limited, pointed out that AMU continues to own 100 million Growthpoint linked units and that the BEE consortium has also extracted cash as a result of the debt refinancing.

"We are pleased that the beneficiaries of the AMU Trust were able to realise value from their investment, and that we've been able to distribute a portion of the Trust's existing cash resources to them. We continue to value the support and involvement of our BEE partners," noted Sasse.

The AMU trustees commented: "The refinance parameters provide the AMU Trust with a more flexible structure to utilise surplus cash, reduce the overall cost of funding and allow for upfront and semi-annual distribution of cash to beneficiaries."

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Denny Crane

Denny Crane
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