PROPERTY: Spear Of Destiny?
Recent Western Cape Business News
CAPE TOWN property pundits will probably fondly remember Spearhead, a Western Cape focussed property initiative that was prone to delivering some rather attractive returns.
The man behind Spearhead was Mike Flax, who has lately been keeping a low (ish) profile as an executive at Redefine – the company which acquired Spearhead some years ago.
But Redefine initiated a transaction recently – involving a slew of its Cape Town properties – that might suggest ‘Mr Spearhead’ is back in business.
Basically Redefine is unloading almost R360 million worth of properties into Arrow Creek Investments 227 – a company in which Flax holds a 42% stake.
Interestingly the deal is being settled only partly in cash with R100 million of the purchase price being a loan from Redefine to Arrow Creek.
The 13 properties are mainly commercial and industrial properties, and include Finsource House in central Cape Town, Omnipark, Bloemhof Building, the Forum Building, Sterling Place, Manhattan Plaza in Bellville, Plum Park in Plumstead, the Nampak building and Viking Park in Epping as well as three properties in Paarden Eiland.
The gem – or at least the most expensive property – is the Upper East Side Hotel in Woodstock, which cost around R127 million.
Also included in the Arrow Creek deal are joint ventures like Redefine’s 50% holding in the Oasis Care Centre, the Oasis Retirement Resort, the Broadlands Stud Farm Development and the Brickfield Joint Venture.
It’s obviously early days, but CBN will be keeping its sights trained on Arrow Creek. Perhaps the Redefine opportunities simply offer an arbitrage opportunity…or maybe an Arrow will be aimed at the JSE some time in the not too distant future.
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