Listed property loan stock company Acucap Properties and sister company Diversified Property Fund said on Friday they had entered into a joint venture with a subsidiary of developer Improvon to acquire a tract of Cape Town industrial land for R260m.

Acucap, Diversified and Imbali Props 7 said they would be acquiring the 61,53ha tract of industrial-zoned land from AECI.

Acucap and Diversified would each acquire an undivided 25% share in the property for R65m while Imbali Props 7 would acquire the remaining 50% share for R130m.

Acucap Properties MD Paul Theodosiou said Acucap and Diversified planned to develop the land for large industrial land users and distribution-oriented users. As the land is developed Diversified and Acucap would keep industrial properties as part of their investment portfolio.

"Industrial land is very scarce in Cape Town, and we estimate that this industrial-zoned land will dominate the Cape market for the next five to seven years. This land will have a major play in any major industrial start-up or industrial development in the Cape," said Theodosiou.

He said the companies looked to partner with strong developers rather than just buying properties from developers.

"There are no conditions precedent to the acquisition. The directors of Diversified and Acucap are of the opinion that the purchase price represents the fair value of the land," said Acucap and Diversified.

Business Day
 
Publisher: I-Net Bridge
Source: I-Net Bridge