The Sentinel Commercial Real Estate Investment Trust (Sentinel REIT), the first Real Estate Investment Trust (REIT) licensed under the current Securities and Exchange Commission (SEC) REIT Guidelines, has successfully acquired One Airport Square (OAS). OAS, an iconic Grade A building situated in the prime area of Accra‘s Airport City, has long been a landmark in the region.
The nine-story OAS is a mixed-use marvel, encompassing 2,000 square meters of commercial space and an impressive 15,000 square meters of office space. With state-of-the-art facilities, the building currently accommodates several blue-chip corporates, boasting an impressive 80 percent occupancy rate.
The acquisition of OAS was a strategic move executed through a combination of equity and debt financing. Equity capital was provided by esteemed entities such as Stanbic Investment Management Services (representing Cocobod, Axis Pensions Trust, and other pension schemes), Petra Trust, United Pension Trustees, General Trust, Bora Capital Advisors, Tesah Capital, and Black Star Advisors. Notably, Nedbank, a leading property finance lender in South Africa, played a pivotal role by providing the debt components, comprising a term loan facility and a short-term bridge facility.
Kisseih Antonio, CEO of Sentinel Asset Management Limited, the promoters and managers of the Sentinel REIT, expressed excitement about the successful acquisition, stating, “This acquisition aligns with our strategy of investing in high-quality, income-producing assets with strong growth potential.” Antonio emphasized the prime location, diverse tenant base, and significant upside potential of OAS.
The CEO also extended gratitude to the SEC and the capital providers for their collaborative efforts and support in closing the acquisition. Notably, Nedbank’s role in facilitating the seamless transaction was highlighted, given that the Sentinel REIT is the first investment vehicle exclusively dedicated to real estate in Ghana.
The Sentinel REIT, a close-ended scheme, aims to provide investors with regular and stable income, sustainable growth, liquidity, and capital growth per share through investments in commercial real estate. Focusing on assets with prime locations, architectural excellence, stable tenant bases, and well-structured leases, the REIT aims for long-term appreciation and maximizing returns on capital employed.
Investors now have the opportunity to diversify their portfolios by participating in a stable and consistent stream, benefiting from cash flow hedged against the depreciation of the Ghana cedi. The acquisition of One Airport Square marks a significant milestone in The Sentinel REIT’s mission to elevate Ghana’s real estate landscape and deliver value to its investors.
