The Sentinel Commercial Real Estate Investment Trust (Sentinel REIT), the pioneer Real Estate Investment Trust (REIT) licensed under the current Securities and Exchange Commission (SEC) REIT Guidelines, has completed the acquisition of One Airport Square (OAS), an iconic Grade A building located in the prime vicinity of Accra’s Airport City.
One Airport Square (OAS), a distinguished nine-story structure, features a blend of commercial and office spaces spanning 2,000 square meters and 15,000 square meters, respectively. With its cutting-edge amenities, OAS accommodates several prestigious corporate entities, boasting an impressive current occupancy rate of 80%.
The acquisition of OAS was facilitated through a combination of equity and debt financing. Equity capital was secured from prominent entities including Stanbic Investment Management Services (representing Cocobod, Axis Pensions Trust, and various other pension schemes), Petra Trust, United Pension Trustees, General Trust, Bora Capital Advisors, Tesah Capital, and Black Star Advisors.
Additionally, Nedbank, a leading property finance lender in South Africa, provided the debt components of the acquisition, comprising a term loan facility 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.
OAS benefits 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” said Kisseih Antonio, CEO of Sentinel Asset Management Limited, promoters and managers of the Sentinel REIT.
“We extend our gratitude to the SEC and the capital providers whose collaboration and support were instrumental in us successfully closing the acquisition. We also want to highlight Nedbank’s contribution in enabling the transaction to be as seamless as it was considering that the Sentinel REIT is the first investment vehicle exclusively dedicated to investing in real estate in Ghana.
As such, their 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.”
The Sentinel REIT operates as a close-ended scheme, dedicated to furnishing investors with consistent and dependable income, alongside sustainable growth, liquidity, and per-share capital growth through investments in commercial real estate. Its strategic focus lies in acquiring a portfolio of commercial real estate assets distinguished by prime locations, architectural excellence, stable tenancy, and well-structured leases.
With a commitment to long-term asset appreciation and maximizing returns on capital, the Sentinel REIT offers a compelling opportunity for astute investors seeking to diversify their portfolios. By investing in assets that generate cash flow protected against potential depreciation of the Ghana cedi, investors can access a stable and reliable income stream.