Durban - SA Retail Properties and Martprop Property Fund had jointly acquired a R141.4 million portfolio of prime retail properties from Old Mutual Life Assurance Company, the fund managers said at the weekend.
The portfolio consists of six community-based shopping centres in Johannesburg, Witbank, Durban and Cape Town, with an anticipated yield of just over 14 percent. The properties range from 4 500m2 to 15 000m2 in lettable area
and are anchored by major national retailers on long leases.
Peter Sparks, the fund manager for SA Retail Properties, said the exposure to national tenants was about 60 percent of the total area, underpinning the quality of the income stream and steady growth expected.
'Although up to 20 percent can be earned on some listed property investments, the risk attached to lower quality properties is much higher,' Sparks said.
Roger Perkin, Martprop's managing director, said net income from the portfolio for the first year would amount to R20.36 million and this was expected to grow by 6 percent year on year.
'However, earnings will not initially improve Martprop's bottom line, as the R70 million contributed to the acquisition was funded by debt through our currently unused facility with NIB,' he said.
SA Retail Properties was unchanged at R5 while Martprop closed 1c lower at R1.75 on Friday.
Publisher: Business report
Source: Business report
SA Retail, Martprop in R141m deal.
Posted On Monday, 25 November 2002 10:01 Published by eProperty News
Durban - SA Retail Properties and Martprop Property Fund had jointly acquired a R141.4 million portfolio of prime retail properties from Old Mutual Life Assurance Company, the fund managers said at the weekend.
Latest from eProperty News
- Government backtracks on earlier decision to increase personal income tax
- Relief at no increase in personal tax, says Dr Andrew Golding
- Optimistic budget masks a number of key risks
- Large A-Grade Industrial Premises on Auction
- Thavhani City set for more growth in 2021 as its Motor City and medical developments accelerate
Most Popular
Five things you need to know about the repo rate
Jan 28, 2021
The South African Reserve Bank has just announced that it is holding the repo rate…
MAS Real Estate welcomes the Oppenheimer family as strategic shareholder
Jan 27, 2021
JSE-listed property company MAS Real Estate confirmed that the tranche of 41.7 million of…
SA REIT Association - Chairman's message and 2021 sector outlook
Feb 02, 2021
Real estate has long been a rewarding sector of the financial markets. Like all sectors,…
It’s cheaper to buy than to rent a home in 2021
Feb 08, 2021
If the past year has taught us anything, it is how important our homes have become to us.
Thavhani City set for more growth in 2021 as its Motor City and medical developments accelerate
Feb 15, 2021
Thavhani City mixed-use urban precinct in Thohoyandou, designed to be the future economic…
eProperty News is a leading online commercial property marketplace serving the Southern African Investment, Office, Retail and Industrial property and allied sectors.