Growthpoint Properties Limited

active

The proposed IFC investment is a ZAR1.2 billion (US$80 million) equity and convertible debt package to finance the development and acquisition of properties for Growthpoint Healthcare Property Holdings Ltd (“GHPH”), South Africa’s first healthcare Real Estate Investment Trust (REIT). Established in 2016, GHPH was founded by Growthpoint Properties Limited (Growthpoint or the Sponsor), South Africa’s largest REIT. GHPH is an unlisted REIT specialized in building a portfolio of income producing healthcare property assets in South Africa and these include hospitals, clinics, diagnostics centers, laboratories and other healthcare related real estate.GHPH will build its portfolio through: (a) acquiring existing properties; and (b) developing new properties (new developments will comprise up to 30% of GHPH’s target portfolio). GHPH already holds five assets with the aggregate value of ZAR2.5 billion (US$174 million), four of which are hospitals and one a medical chamber – small office suites for doctors. Growthpoint is developing a fifth hospital for GHPH called Pretoria Head and Neck hospital, a specialized hospital focused on the head and neck, spinal and vascular surgery. It is expected to be completed in 2020. Concurrently, GHPH is pursuing a pipeline of additional investment opportunities and expects to grow to ZAR5 billion worth of assets over the next three years. The proposed IFC financing package is to support GHPH’s growth plans.