PROPERTY loan stock company SA Retail announced yesterday it had entered into an agreement with Sanlam Life Insurance to acquire an undivided 50% share in a retail property for R95,4m.

The property, Sanlam Centre Pinetown, is situated at 17 Kings Road, Pinetown, Durban.

SA Retail's stake in the shopping centre would be settled by issuing 18-million SA Retail units at 530c a unit.

SA Retail said the rationale behind the acquisition was fuelled by the company's investment policy to "ensure sustainable long-term income and capital growth by maintaining premier quality portfolios".

"The acquisition of Sanlam Centre Pinetown is in terms of the company's investment criteria," the company said.

SA Retail said the gross lettable area of the subregional shopping centre amounted to 38174m² with a vacancy level of 1%.

The company said the tenants included national retailers which occupied about 84% of the space, with the balance taken up by small retailers.

SA Retail MD Peter Sparks said yesterday that the company intended to grow the fund significantly in the short term, having recently acquired Town Square Shopping Centre in Constantia Kloof, Johannesburg, for R49m.

He also said that the company was also likely to acquire a shareholding in one of SA's premier regional shopping centre.

Sparks said that he could not elaborate any further on these plans at this stage.

SA Retail had been on the acquisition trail recently.

In April last year SA Retail acquired the Westwood Village Shopping Centre in Boksburg for R14,5m at an initial yield of 14%.

In October it announced the acquisition of Town Square, with Sparks saying the shopping centre fitted in well with its portfolio of convenience shopping centres in stable communities.

The 5200m² Town Square centre would have an initial yield of 11,5% and had no vacancies.

SA Retail has also undertaken significant upgrades to various retail properties, Sparks said.

The upgrades in question included a R4,5m refurbishment of the Eikestad Mall, the construction of a R1,8m Woolworths Food Store at Highland Mews, Witbank and the conversion of the Pick 'n Pay at Coachman's Crossing from a Pick 'n Pay Fresh to a Pick 'n Pay Family Store at a capital cost of R2,9m.