Afine Investments, a real estate investment trust (Reit), which owns petrol stations, has announced it will acquire a company called Glomor, via a mixed share swap and cash deal.
Afine listed in December 2021 with assets including seven stations across SA, worth around R307m. CEO Anton Loubser has said that Afine is aiming to grow its asset base to R1bn by the middle of 2023. It is the first SA-focused Reit to offer local investors access to rental income earned at petrol stations.
Investors buy shares in Reits in order to get exposure to reliable income payouts. Often pension fund managers invest in Reits.
On Monday Afine announced, via the JSE’s stock exchange news service (Sens), that it had concluded an agreement with Petroland Group and Terra Optimus in terms of which Afine would acquire 100% of the shares in Glomor.
Glomor owns two properties: Portion 112 of Farm Middlevlei located in Randfontein, and Erf 438 Rocky Drift, located in Mpumalanga.
The purchase consideration will be settled with a combination of cash and Afine shares. Following the completion of the acquisition, Petroland and Terra Optimus will hold an interest of 6.22% and 5.55% in Afine respectively.
The purchase consideration will be settled as follows. As many as 4 512 195 Afine shares will be issued to Petroland and 4 024 390 Afine shares plus R2m in cash will be given to Terra Optimus.