Growthpoint Properties Limited have acquire City Mall in North West Province, for a total purchase consideration of R105 million, at an estimated forward yield of 10,35%.

The fully let 18,197m2 City Mall is situated in the central business district of Klerksdorp and serves as the premier shopping centre of the regional commercial node in the Northwest Province which is supported by a catchment area which includes Orkney, Stilfontein and Wolmaransstad.

“Growthpoint has identified City Mall in Klerksdorp as a suitable acquisition opportunity which will enhance the quality of its property portfolio as well as the quality, long-term sustainability and growth of the income stream available to linked unitholders.” said Stephan le Roux, Growthpoint Retail Fund Manager.

City Mall comprises a single level shopping centre and a cinema complex with anchor tenants Pick ‘n Pay (3,428m2) with a lease that extends to 2017, Woolworths (3,374m2) with a lease that extends to 2012, Nu Metro (2,063m2) and Jet Stores (1,556m2).

The centre has in excess of 80% national tenants including leading retailers Mr Price, Foschini, New Clicks and Truworths. There will be continuity in the management of City Mall in that Growthpoint’s appointed asset manager, Investec Property Group, will be retained as property manager for this shopping centre.

This acquisition will further enhance Growthpoint’s sectorally well-balanced, geographically diversified, quality direct property portfolio.

“City Mall fits the investment criteria whilst improving Growthpoint’s exposure to the buoyant retail property market in Klerksdorp. There are exciting opportunities to redevelop existing space to address the demand from national retailers to expand,” stated le Roux.

The acquisition is subject to Competition Commission approval and transfer is expected before the end of December 2005.

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Issued on behalf of:                  
Growthpoint Properties Limited
Stephan le Roux          
Tel.      011 286 7000    
Cell. 082 607 0245

By:                                          
Marketing Concepts
Sandy Davey
Tel. 011 880 2213    
Cell. 083 453 6668