Vukile to Acquire 50% of East Rand Mall

Posted On Monday, 26 November 2012 08:23 Published by Commercial Property News
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Vukile Property Fund announced it is to acquire a 50% share in the East Rand Mall in Gauteng for a consideration of R1.115 billion

Laurence RappSubject to the negotiation of formal legal agreements and Competition Commission approval. The other half will be acquired by Redefine Properties.

The East Rand Mall, valued at a total of R2.23 billion, is one of the leading shopping centres in the Gauteng province. Vukile chief executive Laurence Rapp said the acquisition was in line with the company’s strategy of aggressively growing its portfolio with a special emphasis on the retail sector.

The property, valued at a total of R2.23 billion, is rated among the top malls in South Africa with a gross lettable area of 62 000m² and an 85% comprehensive national tenant component, including Edgars, Mr Price, Woolworths and Foschini.

“The acquisition will significantly enhance the quality of our portfolio and is in line with our stated objective of aggressively growing the fund with a special emphasis on the retail sector,” he says.

The Acquisition is in line with Vukile's stated objective of growing a quality portfolio of properties with a special emphasis on the retail sector in order to achieve meaningful capital appreciation and sustainable growth in distributions. Vukile already manages the Property on behalf of Sanlam and accordingly has deep insight into all aspects of the Property, making this a low risk acquisition that will improve the quality of Vukile's portfolio and be easily integrated. The Property is a well located, quality retail asset and hence the Acquisition will enhance the value of Vukile's retail portfolio. 

Furthermore, additional bulk of c.10 000 m² is available for future development.

Last modified on Monday, 27 May 2013 12:49

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