This acquisition is to be funded in the main by Prima's sale of three non-core properties to Apex-Hi for R115 million. The properties disposed of did not adhere to Prima's investment criteria of quality retail, commercial and industrial properties with capital values below R15 million.
The new properties comprise a cumulative 90,000 gross lettable area consisting predominantly of retail properties with quality national tenants the likes of Furn City, Ellerines, Town Talk, Geen & Richards, JD Group and others, most on long leases, some extending as far as 2009.
The deal is unconditional with approval already received from the Competition Commission and unit holders.
"It is Prima's strategy to invest in quality properties with capital values of between R2 million and R15 million and to continue to diversify its property portfolio thereby reducing the risk profile of the portfolio," said Prima Property Trust CEO Steven Jersky.
In line with this Prima has strategically focused on the management of a high number of geographically diverse properties through the introduction of a two-tier property management structure with Broll Property Managers as lead manager, and hands-on property sub-managers responsible for the day-to-day management of properties within designated geographical cells.
"We are continuing to grow the fund to our R1 billion goal and are presently considering the purchase of additional properties," said Jersky.
