CBS Property Portfolio Limited has acquired 7 prime properties for R122 million, including the unique Simonstown Boardwalk Centre, at a combined initial forward yield of 10.38%.

CBS Property Portfolio listed on the JSE on 2 November 2005 and has proved a notably liquid counter, with volumes traded during its first month higher than expected.

“Based on the annualised trade of CBS linked units for the month of November, liquidity exceeds that of the majority of peer funds with similar market capitalisations,” points out Derek Greenberg, an executive director of the company. CBS’ annualised volume traded, based on November 2005 volumes, is 44.76%.

The CBS executive team is confident that these property acquisitions, made with additional cash raised at listing and additional units issued, will be yield enhancing and contribute to meeting the fund’s forecast earnings of 69c per share.

“We committed to putting this money to work and we are achieving this with these acquisitions that meet CBS’s stated objective of owning properties which provide sustainable and growing income in South Africa’s major metropolitan areas,” explains Gary Fisher, an executive director of the company.

The landmark 3,800m2 Simonstown Boardwalk Centre is located on the Simonstown waterfront and caters specifically for the growing tourist market visiting the area. The other properties comprise 6 multi-tenanted Gauteng office buildings including Gateway Park, Gate Creek and Green Oaks in Midrand, and Duam Properties, ENK Trust and JH Moselein, in Randburg.

“The properties are all well let and will enhance the quality of the portfolio as well as the long-term sustainability and growth of the rental income stream distributed to CBS linked unitholders,” says Fisher.

The CBS executive team comprises four of the most experienced and dynamic property professionals in the sector, being Martin Ettin, Derek Greenberg, Gary Fisher and Sean Mackay.

CBS linked units were issued at a price of 675c plu and attained a closing price of 730c plu on Friday, 2 December, representing an increase of 8.15% during its first full month of listing.

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Issued on behalf of CBS Property Group:

Martin Ettin
T. 011 215 6440        
C. 083 325 1463

Gary Fisher
T: 021 426 1880      
C: 083 450 2222

Derek Greenberg
T. 011 215 6440      
C.082 552 7244

Sean Mackay
T. 021 426 1880      

By Marketing Concepts:
Sandy Davey / Bronwen Noble
T: 011 880 2213      
C: 083 453 6668 / 082 855 4349