Accelerate buys KPMG buildings for R850m

The assets include the iconic KPMG Crescent and sky bridge off Jan Smuts Avenue as well as Wanooka Place in Parktown

Accelerate Property Fund has bought KPMG's property service holding company with six office property assets across various centres in South Africa for R850 million.

The acquisition will push Accelerate’s combined portfolio value past R7 billion.

Accelerate Chief Operating Officer, Andrew Costa today said although our focus strongly remains on retail, we saw a unique opportunity to acquire another quality portfolio through this strategic acquisition.

“KPMG is an exceptional counterparty to transact with. Their blue chip status, combined with a 15 year lease provides a defensive underpin to our portfolio,” he said.

The assets include the iconic KPMG Crescent and sky bridge off Jan Smuts Avenue as well as Wanooka Place in Parktown, and A-grade offices with onsite parking in Polokwane, Port Elizabeth and Secunda.

The deal will be effective following approval from the Competition Commission as well as several other conditions.

Accelerate‚ which listed onto the JSE in December 2013‚ in Novmeber last year reported diluted headline earnings per share (HEPS) of 24.91c for the six months to September 2014.

The company declared an interim cash distribution of 23.99c per share, exceeding the pre-listing forecasted distribution of 23.93 cents per share. Distributable profit after taxation attributable to equity holders of R141.6 million was reported.