Niche retail Real Estate Investment Trust (REIT), Fairvest Property Holdings Limited announced that it has entered into an agreement to acquire two key shopping centres, Middestad Centre and Mega Park in Bloemfontein’s non-metropolitan consumer market, for a total consideration of R229 000 000. The acquisition will be funded through a combination of debt and/or equity.
Middestad Centre is a 19 943m² shopping centre, centrally located in the heart of the Bloemfontein central business district. It is a well-established centre within a strong demographic area, with sound trade and an emphasis on pedestrian clientele. Mega Park is a 5 963m² shopping centre located in South Western Quadrant of Bloemfontein. The centre borders Oranjesig, which can be characterised as a typical transition area surrounding the Bloemfontein central business district. Mega Park is also situated opposite the Show Grounds, which is identified as a smaller emerging node.
Both properties have been acquired at a favourable forward acquisition yield of 10%. Chief Executive Officer, Darren Wilder said: “Fairvest’s strategic focus is on retail properties in the high growth, lower LSM consumer market, providing investors with access to this attractive underdeveloped end of the property market. Our latest acquisitions represent a pleasing fit within the company’s portfolio and the successful conclusion of the transaction would assist Fairvest in maintaining its superior distribution growth.
