Paramount makes Cape acquisitions

Listed Paramount Property Fund has announced the acquisition of two landmark properties in Cape Town aimed at diversifying its property portfolio and improving the Fund’s financial structure. The latest acquisitions follow on that of five office blocks in Sandton in September 2003 and bring the Fund’s recent purchases to over R100-million.

Managing Director of Paramount, Rodney Squire-Howe says, “Our latest acquisition relates to two substantial blue-chip investments, the first being in Claremont in Cape Town, which is one of Cape Town’s strongest decentralised nodes, while the second is a light industrial complex in Airport Industria, a well-positioned industrial area which is gaining increasing popularity.”

Squire-Howe regards the Claremont property as a “trophy building”. The landmark Swiss Re Building on the corner of Main and Protea Roads, totals 12 000 square metres and is in the sought-after area around Cavendish Shopping Centre. The building was acquired for R52,5-million and is well-known for its hi-tech, silver-clad exterior and its six levels of parking with the building. The building was custom-built for the re-insurer and has a long-term, blue-chip tenant base which includes Swiss Re, Liberty, Momentum and Absa. McCarthy Motors occupy the highly visible showroom on the ground floor. The building also has rental guarantees over the small amount of vacant space.

The second acquisition is a well-known industrial complex in Airport Industria in Cape Town which was acquired for R12,4-million. The 5 000 square metre industrial complex, which consists of offices, a workshop and a warehouse, is occupied by the previous owner, Wasteman a waste management and recycling firm in a sale-and-leaseback deal. The company has signed a seven year lease for the property which is situated in Mobile Rd in Airport Industria.

The loan finance for Swiss Re was arranged by Standard Bank Properties.