Resilient buys mall in Tzaneen for R83,3m

Posted On Tuesday, 11 November 2003 02:00 Published by eProp Commercial Property News
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PROPERTY loan stock company Resilient Property Income Fund has acquired a regional mall in Tzaneen for R83,3m and disposed of an office block for R35m.

Property-Housing-ResidentialThese developments are part of its plans to increase its retail exposure and eliminate its office component.

Resilient MD Des De Beer said retail made up 65% of the company's portfolio now and it planned to increase this to 70%.

"We believe there are opportunities in the niche we are focused on, which is small cities and large towns," De Beer said.

The company's office exposure is 6% of its entire portfolio.

"We do not have the specific office skills in our management team. We also think the market is still expensive in relation to the opportunities we find in our retail and industrial markets," he said.

Resilient will acquire the 32000m² Tzaneng Mall for R83,8m from the Motor Industry Pension Fund. The purchase is based on a 14% forward yield.

The mall's tenants include a full spread of national retailers.

Among these are Pick 'n Pay, Game, Woolworths, the Mr Price Group, Edcon and Foshini.

The acquisition is still subject to scrutiny by the Competition Commission.

The deal will be financed from existing cash resources, as well as additional loan facilities.

De Beer said the company's borrowings were down to 42% at present and that even with the deal, it would remain below the 50% mark.

Meanwhile, an office block known as the eThekwini Municipality Building in the Durban central business district was sold to property loan stock company ApexHi Properties. The company said the purchase price of the office block was based on market rental, agreed upon by both parties, with Resilient retaining an income stream that had been independently valued at R17,9m.

Of the R35m selling price, R24,2m is payable equally in ApexHi A and B linked units at a combined issue price of R13,40 with the balance payable in cash. The company intends to sell these units in the short to medium term.

The disposal is also subject to ApexHi obtaining approval from the JSE Securities Exchange SA.

Last modified on Friday, 09 May 2014 14:50

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