{"id":549122,"date":"2006-06-08T15:58:18","date_gmt":"2006-06-08T15:58:18","guid":{"rendered":"http:\/\/localhost:8888\/wordpress\/technology\/549122-bcx-offloads-properties.html"},"modified":"2006-06-08T15:58:18","modified_gmt":"2006-06-08T15:58:18","slug":"bcx-offloads-properties","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/technology\/549122-bcx-offloads-properties.html","title":{"rendered":"BCX offloads properties"},"content":{"rendered":"

BCX said the deal enabled it to settle its outstanding debt on the properties, while retaining about R130m in cash, and being able to restructure its rental terms on a more commercially efficient basis. <\/font><\/p>\n

The better rental terms would enable it to improve cash flows on a monthly basis, BCX said. <\/font><\/p>\n

Had the transaction taken place by the end of November last year, it would have pushed up headline earnings a share by 4.4% to 22.5c a share, and the group’s net asset value by 5.2% to 495.8c a share, Business Connexion said by way of illustration. <\/font><\/p>\n

Business Connexion shares were 1.1% lower at 819c a share by Thursday afternoon against the backdrop of a weak overall market. <\/font><\/p>\n

Adding properties<\/b> <\/font><\/p>\n

For Growthpoint, the deal means adding 8 ‘Grade A’ commercial properties with total lettable space of 48 065 square metres, to its portfolio. <\/font><\/p>\n

Growthpoint said the acquisition reaffirmed its stated objective of investing in "quality, diversified physical property assets that are underpinned by long term, sustainable, escalating income streams". <\/font><\/p>\n

But, because the acquisition only increased the size of its asset base from R11.5bn to R11.9bn, the deal would not have a material impact on its forecast distributions or net asset values, Growthpoint said. <\/font><\/p>\n

Its shares were 4.5% down at R11.70 by early Thursday afternoon. <\/font><\/p>\n

The properties are situated in Midrand, Menlyn in Pretoria, La Lucia in Durban, Montague Gardens in Cape Town and St George’s Park in Port Elizabeth. <\/font><\/p>\n

Business Connexion is the only tenant in six of the eight properties, but has provided Growthpoint with rental guarantees for the other two, multi-tenanted buildings for a year.<\/font><\/p>\n

Source:\u00a0 Fin24<\/font><\/p>\n","protected":false},"excerpt":{"rendered":"

JSE-listed technology services group and Telkom target, Business Connexion (BCX), has sold eight commercial properties to Growthpoint Properties (GRT) for R379.2m – deeming them non-core to its business – and will lease the space back at ‘market-related’ rates for rental periods of between three and 10 years. <\/p>\n","protected":false},"author":23,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[17],"tags":[],"class_list":["post-549122","post","type-post","status-publish","format-standard","hentry","category-technology"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/549122"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=549122"}],"version-history":[{"count":0,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/549122\/revisions"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=549122"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=549122"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=549122"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}