Redefine Income Fund has acquired a portfolio of 9 properties from Collins Property Group for R252,5 million, at a forward yield of 10.7%.The properties include the Accenture building in Woodmead, three Africa Glass buildings, three Mauff Zail and Partners buildings, the Unitrans BMW Northcliff building and the Avroy Schlain building. Eight of the buildings are located in Gauteng and one in KwaZulu-Natal. All are in excellent condition with triple net leases.
"This portfolio fits Redefine's profile of buildings with A-grade tenants, in prime locations, with long leases and good escalations," said Redefine Income Fund CEO Brian Azizollahoff.
This transaction has been funded by a combination of borrowings and cash generated from the sale of select shares from Redefine's listed securities portfolio. This is in line with the fund's stated strategy to weight its hybrid investment portfolio in favour of physical properties.
"The initial yield, combined with the average escalation of 11%, represents a superior investment to that offered by listed property securities. The transaction will further assist in increasing Redefine's investment in physical properties," said Azizollahoff.
The transaction is conditional upon the parties securing all approvals and consents required to be secured in terms of the Competition Act, 89 of 1998.
