Sentinel REIT acquires One Airport Square
The Sentinel Commercial Real Estate Investment Trust (Sentinel REIT) has acquired One Airport Square (OAS), the iconic Grade ‘A’ building in one of Accra’s prime areas, the Airport City.
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Sentinel is the first REIT licensed under the Securities and Exchange Commission (SEC) REIT Guidelines.
The nine-storey OAS is a mixed-use building with a commercial space of 2,000 square metres and office space of 15,000 square metres.
Boasting modern facilities, the building, which houses several blue-chip corporates, has a current occupancy rate of 80 per cent.
The acquisition of OAS was executed through a combination of equity and debt financing.
The Equity capital was provided by Stanbic Investment Management Services (representing Ghana Cocoa Board (COCOBOD), Axis Pensions Trust and many other pension schemes), Petra Trust, United Pension Trustees, General Trust, Bora Capital Advisors, Tesah Capital and Black Star Advisors.
Nedbank, a leading property finance lender in South Africa, provided the debt component of the acquisition, comprising a term loan and a short-term bridge facility.
"We are thrilled to have successfully acquired our first asset, a building that exemplifies the quality and strategic focus of the Sentinel REIT.
This acquisition aligns with our strategy of investing in high-quality, income-producing assets with strong growth potential,” the Chief Executive Officer (CEO) of Sentinel Asset Management Limited, Kisseih Antonio, said.
He added that benefits accruing to OAS came from a prime location, a diverse tenant base and significant upside potential.
“The acquisition also reflects our team's dedication, expertise and commitment to delivering value to our investors," Mr Antonio added.
The CEO of Sentinel Asset Management Limited, promoters and managers of Sentinel REIT, expressed the company’s gratitude to SEC and the capital providers whose collaboration and support were instrumental in successfully closing the acquisition.
Mr Antonio also highlighted Nedbank’s contribution in enabling the transaction to be as seamless, as it was considering that the Sentinel REIT was the first investment vehicle exclusively dedicated to investing in real estate in Ghana.
He said the bank’s international track record in funding REITs and their local market experience in real estate financing were invaluable.
“In addition, their provision of a short-term bridge facility to the Sentinel REIT was key to the successful acquisition of OAS,” he stated.
