SA Retail, Martprop in R141m deal.

Posted On Monday, 25 November 2002 10:01 Published by
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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.
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

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