Annuity buys Clarins SA property portfolio

Posted On Tuesday, 30 July 2013 20:07 Published by eProp Commercial Property News
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Annuity Properties says it will acquire the property portfolio of Clarins SA‚ a subsidiary of international luxury cosmetics company Clarins Group.

Derek Greenberg and Panico TheocharidesAnnuity Properties‚ which listed on the JSE in May 2012‚ said on Monday that it would acquire the property portfolio of Clarins SA‚ a subsidiary of international luxury cosmetics company Clarins Group.
 
Annuity‚ which will also buy the McCarthy/Unitrans property portfolio and the Coricraft distribution centre‚ said the acquisitions were consistent with its strategy to build a quality property portfolio that offered long-term distribution and capital growth underpinned by strong underlying contractual cash flows.
 
In June the property loan stock company reported a distribution for the year ended March of 40.91c per linked unit‚ beating its initial guidance by 1.1%.
 
The company said the aggregate purchase consideration for the property acquisitions was about R369m‚ to be funded through a combination of new and existing debt facilities and/or the issue of new Annuity linked units via a private placement.
 
“The related property acquisition and transaction costs will be funded through new debt facilities. In this context the minimum amount Annuity will seek to raise via the private placement will be about R193.6m‚” it said.
 
The Clarins property portfolio includes the Clarins head office and the Clarins industrial property in Johannesburg as well as the Clarins office property in Cape Town.
 
“The effective date for the acquisition of each Clarins SA property will be the date of transfer of such property into the name of Annuity‚ which is expected to take place on or about September 15‚” the company said.
 
In terms of the McCarthy/Unitrans acquisition‚ the group said the specialised retail properties offered a high-quality tenant profile‚ with McCarthy Audi and Unitrans Nissan occupying 78% of the total specialised retail gross leasable area.
 
The office property is predominately tenanted by a combination of large‚ medium and small companies and professional firms‚ and is located within the well-established Hendrik Potgieter strip in Roodepoort.
 
The transfer of both the McCarthy/Unitrans and Coricraft Distribution Centre property is expected to take place on or about October 1.
 
“Coricraft is on a 10-year triple-net lease which escalates at the higher of 8% or CPI (consumer price index) per annum and has eight years and one month remaining … terminating on July 31 2021‚” Annuity said.
 
“Coricraft will sign a new 10-year lease upon transfer of the Coricraft Distribution Centre Property into Annuity’s name.”
 
Annuity said the deal was also an opportunity for it to increase its portfolio weighting in the specialised retail and industrial sectors.
 
The company’s initial portfolio contained four properties: the Sasfin head office in Waverley‚ Johannesburg; the Woolworths call centre in Cape Town; the Oakfields shopping centre in Benoni; and the Cell C head office in Morningside‚ which transferred shortly after listing.
 
Among the acquisitions made during the year ended March were the Atrium Building in Braamfontein for R134m and the “high-quality“ Langeberg Mall in Mossel Bay for R410m. Both properties were transferred in December.
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