Growthpoint ups offer for Fountainhead to 37 linked units per 100

Growthpoint Properties (GRT) has increased its offer for Fountainhead to 37 Growthpoint linked units for every 100 Fountainhead units‚ from the previous offer of 35 linked units‚ and reaffirmed its intention to settle or assume Fountainhead’s outstanding interest bearing debt.

The revised offer‚ announced on Thursday‚ represented an increase of 5.7% or R605 million above the previous offer and a premium of 12.8% to the closing price of Fountainhead units on February 19 2013.

The revised offer also represented a premium of 8.6% or R857 million to the Redefine offer on February 19 2013.

Growthpoint has undertaken to provide Fountainhead unitholders with a pricing floor of 35 Growthpoint linked units per 100 Fountainhead units‚ which floor equates to a premium of 6.7% to the closing price of Fountainhead units on February 19 2013 and a premium of 2.5% to the Redefine Offer on February 19 2013

Growthpoint also provided a trading update‚ increasing its guidance in respect of growth in its distribution per linked unit for the half year ended December 2012 and for the full year ending June 2013 to between 7.0% and 7.5%.

Growthpoint is in the process of finalising its interim results and these results are expected to be published on February 27 2013.

Taking into account that the majority of Growthpoint's income is contractual rental‚ the distribution per linked unit for the half year ended December 31 2012 and for the full year ending 30 June 2013 is forecast to be between 7.0% and 7.5% ahead of the distribution per linked unit for the previous comparable period respectively‚ which is ahead of guidance previously provided to the market.

The forecast distribution per linked unit has been based on Growthpoint's budgets and projections for the year to June 2013.