The US division of UK-based property company Liberty International, which has a substantial shareholding in SA, has made three property acquisitions worth more than $92-million.

Two of the purchases are retail-related, which is positive for Liberty International's growth as the retail property market in the US is in a boom phase.

Capital & Counties USA, the wholly owned subsidiary of Liberty International, announced on the weekend that it had acquired an open-air shopping centre of about 15 000m² in Walnut Creek, one of the most affluent communities in the East Bay region of San Francisco Bay.

Capital & Counties said the average household income in Walnut Creek was almost 100 000 a year.

Capital & Counties said the investment had an initial yield of 6,7% on the purchase price of $72,5-million, and an existing loan of $41-million had been used.

It also bought a 7 000m² medical centre on 2ha of land about 12 km south of Walnut Creek for $20-million, at an initial yield of 7,6%.

The centre has 10 separate buildings that are all let for medical use.

Capital & Counties said it had also purchased a retail development site of 17ha at Antioch, Contra Costa Count y, California, for an undisclosed price.

It said the land was going to be used for a proposed new freeway and, when developed, would form part of a newly established retail hub in an area that had one of the fastest-growing populations in northern California.

Speaking from London, Capital & Counties USA MD and Liberty International director John Saggers said the company owned medical office buildings and had experience in this area.

"They have always been extraordinarily good performers in terms of rental appreciation," said Saggers. He said Capital & Counties was also looking at the development potential of land next to the medical centre.

He said the retail development site at Antioch was seeing an "enormous increase" in housing.

"We are planning to put retail developments on this site to complement the existing retail and serve the growing population," said Saggers.

Capital & Counties said the funds for the three purchases were derived from the $45-million profit on the sale of its Ghirardelli Square waterfront shopping centre in San Francisco and the refinancing of it s Serramonte Shopping Centre, also in San Francisco, where the previous $64-million loan had recently been repaid and a new seven-year loan of $95-million arranged.

Colin Young, fund manager of Old Mutual's South African-listed property funds, said the acquisitions were "positive".

"I think that US retail property is booming at the moment and companies have to identify areas of higher growth in the US," he said. Young said malls on the outskirts of cities were more popular than downtown areas because they were easier to reach.

Business Day