Tower Property Fund concludes R110m acquisition of Evagold Centre

Posted On Wednesday, 29 April 2015 14:09 Published by
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Tower Property Fund Limited concludes R110m acquisition of Evagold Centre.

Marc-Edwards

Tower concluded an agreement for the acquisition of the property letting enterprise of the Evagold Centre situated at the corner of the Golden Highway and Tiro Street, Evaton West from Great Lion Acquisitions (Pty) Ltd for an aggregate purchase consideration of R110 585 000.

Evagold Centre is a low income convenience retail centre with strong trading densities. The acquisition increases Tower’s retail portfolio from 39% to 42% of its entire property portfolio and is in line with Tower’s longer-term objective to increase its retail exposure to 50% of its portfolio. 

Tower will acquire the property letting enterprise, which includes the property, with effect from the date of registration of transfer of the property into Tower’s name. 

The purchase price will be payable by the allotment and issue of Tower shares and cash. 

The seller is in the process of negotiating the conclusion of a lease agreement with BP Southern Africa Proprietary Limited in terms of which BP will be entitled to erect a petrol filling station, at its expense, on a portion of the property.

If the BP lease is concluded and becomes unconditional before 31 December 2015 and BP pays the initial rental and deposit, the purchase consideration payable by Tower for the acquisition will be increased by an amount equal to the initial rental payable by BP in terms of the BP lease, calculated on an annual basis, multiplied by the initial agreed upon yield of 9.5%. The purchase consideration payable by Tower for the acquisition will increased by a maximum of R6 947 368.

Great Lion Acquisitions has provided Tower with a rental guarantee, indemnifying Tower against any shortfall in actual rental income in respect of identified recently improved portions of the property for a period of 6 months from the first day of the month after the transfer date.

 

Last modified on Friday, 01 May 2015 23:42

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