PROPERTY loan stock company S A Retail has added the Rondebosch and Tokai shopping centres to its Western Cape portfolio comprising two centres in Somerset West, and the flagship Eikestad Mall in Stellenbosch.
The Rondebosch and Tokai centres were bought in December as part of a deal involving an undivided half share of an Old Mutual retail property portfolio worth R140 million. Tenants at the Tokai centre have been given notice that the building is to be redeveloped in July at a cost of R40 million.
SA Retail fund manager Peter Sparks says the Tokai centre was bought as a redevelopment scheme that will now be enhanced by the inclusion of a new generation Pick 'n Pay store as anchor tenant. The development of a modern new centre will take about a year to complete. He says the aim is to boost the assets in the Western Cape from 16% to 25% of the national portfolio. S A Retail was established and listed on the JSE only a year ago with a portfolio worth R860 million. It invests in neighbourhood shopping centres serving stable communities, and the focus is on centres with a high proportion of national retailers to ensure a steady and growing rental income.
SA Retail is the fifth largest listed company in the property loan stock and property unit trust sectors. Total assets in the portfolio of 25 neighbourhood shopping centres throughout the country are now worth R910 million and the R1 billion asset mark is expected to be reached by mid-year. He says expected lower interest rates this year will improve opportunities to buy other suitable centres.
Shopping centres in the portfolio continue to perform well with Eikestad Mall in Stellenbosch currently attracting 850 000 shoppers a month which is about 30% up on the previous year. The high foot-count trend is also evident in the other centres. Vacancy levels are down and rentals are growing. Retail property continues to outperform other property sectors with total returns of 14,6% a year for five years and 13,8% a year for three years.
Publisher: Cape Business News
Source: Cape Business News
SA Retail goes shopping in the Western Cape.
Posted On Monday, 10 March 2003 10:01 Published by eProperty News
PROPERTY loan stock company S A Retail has added the Rondebosch and Tokai shopping centres to its Western Cape portfolio comprising two centres in Somerset West, and the flagship Eikestad Mall in Stellenbosch.
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