Prima Property Trust acquires diverse portfolio of retail properties

Posted On Friday, 29 October 2004 02:00 Published by eProp Commercial Property News
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Furthering its strategy of growth through acquisition, Prima Property Trust today announced its purchase of a portfolio of properties for R82 million from Ellerine Holdings.

Property-Housing-ResidentialFurthering its strategy of growth through acquisition, Prima Property Trust today announced its purchase of a portfolio of properties for R82 million from Ellerine Holdings.

The retail focused portfolio comprises 34 geographically diverse properties acquired with R60 million in cash with the balance funded through the issue of 24,4 million Prima units at 90cpu.

The acquisition will be earnings enhancing, increasing headline earnings by 5.76% to 10.83cpu and has furthered Prima's investment strategy to grow its portfolio to in excess of R1 billion. The acquisition will enlarge Prima’s portfolio to in excess of R670 million.

"Within Prima's investment criterion of quality properties offering yields of upwards of 13,5% and having capital values between R2 million and R15 million, retail property currently represents the good value," said Prima Property Trust CEO Steven Jersky.

Tenanted in the main by blue chip retailers such as Town Talk, FurnCity and Ellerine Furnishers on predominantly 5-year leases, commencing 1 November 2004, the new portfolio will extend Prima's lease expiry profile.

The acquisition also increases the sectoral diversity of Prima's portfolio with half of the newly acquired properties located outside Gauteng.

In line with its strategy Prima has focused on the management of a high number of geographically diverse properties through a two-tier property management structure with Broll Property Managers as lead manager, and hands-on property sub-managers responsible for properties within designated geographical cells.

"As Prima continues to grow its niche portfolio of quality properties with smaller capital values through acquisition, it has created a unique opportunity for sellers by providing a distinct home for properties of this kind," said Jersky.

This acquisition is subject to various approvals including the Competition Authorities and the JSE Securities Exchange South Africa.

Last modified on Wednesday, 14 May 2014 11:56

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