Resilient Property Income Fund (RES) has agreed to acquire Highveld Mall, a retail centre in Witbank that is now under construction, for 270 million rand, the company says.

The 40,000 square metre centre, which is due for completion in April 2007, will be anchored by branches of retailers Edgars, Woolworths and Pick 'n Pay.

According to Resilient, the group will own 60% of Highveld Mall at completion. The company acquired the land at a cost of 11.4 million rand in December, while the development agreement provides Resilient with a guaranteed yield of 10% going forward.

The acquisition would be funded from existing cash resources and additional borrowing facilities, the company added, and would have no significant impact on Resilient's net asset value per linked unit.

The forecast revenue from the project for the eight months to end-December 2007 amounted to 20 million rand, while the forecast net profit totaled 2.0 million rand.

I-Net Bridge
Publisher: I-Net Bridge
Source: I-Net Bridge