Indluplace acquires residential portfolio for R420m

Indluplace Properties, the residential property portfolio of Arrowhead Properties, said on Tuesday it had acquired a residential portfolio from Connaught Properties for R420 million, increasing its portfolio to R2 billion.

The acquired portfolio, which comprises nine high rise buildings with a total of 1,180 residential units, will increase Indluplace's total number of assets to 104 properties with 4,870 individual residential rental units.

The portfolio would be acquired at an estimated forward yield of 10.5%, Indluplace said in a statement.

Carel de Wit, finance director of Indluplace, said the acquisition broadened its portfolio with revenue enhancing properties.

"The properties offer an affordable and convenient quality rental offering as they are ideally placed near transit hubs in Johannesburg," De Wit said.

The portfolio will be managed by the existing property managers. This will ensure continuity of this well managed portfolio.