Diversified Property Fund (DIV) has agreed to acquire a retail centre to be constructed in Alberton, called Pick 'n Pay Redruth, for approximately 104 million rand, the listed property fund announces.

The 11,400-square meter centre, due for completion in October 2006, will be anchored by retailers Pick 'n Pay (PIK), Woolworths (WHL) and New Clicks (NCL).

Diversified will own 100% of the center upon completion. Its development agreement provided it with a guaranteed yield of 9.5%, therefore not exposing it to any development risk.

Diversified said it would fund the transaction from existing cash resources and additional borrowing facilities. The acquisition would have no significant impact on its net asset value per linked unit as at October 1, 2005.

The group's forecast revenue for the nine months to end-June 2006 totaled 7.4 million rand, it added, while its forecast net profit was 0.4 million rand.

I-Net Bridge