The US subsidiary of UK based Liberty International, which has a 50%South African shareholding, has sold a prime San Francisco property ata 30% premium to its market value as at December 31 last year.

Speaking from the UK yesterday, John Saggers , MD of subsidiary Capital& Counties USA, said Ghirardelli Square , a San Francisco waterfrontshopping centre, had been sold for about $45m.

The market value of Ghirardelli Square was 34,5m last year. It producedabout $2,9m of net property investment income the same year.

Saggers said Capital & Counties had until recently owned only 50%of the property, but in June last year acquired the remainder from thejoint owner.

"We took full control of the property to enable us to have the freedomto embark on various value adding strategies.

"However, a number of approaches were made to us by investors interestedin the acquisition of this high-profile asset and we decided to respond to that demand in the currently strong US investment market."

Saggers said the property had prospects, and the price Capital &Counties got for it "reflected that potential".

Colin Young, fund manager of Old Mutual's South African-listed propertyfunds, said the deal did not come as a surprise because Liberty International's US portfolio was a "trading portfolio".

Business Day