V&A Waterfront sale
 
BIDS FOR A BERTH 
 
By Ian Fife
      
 
Consortia of Old Mutual and the Public Investment Corp, and Wendy Luhabe and Stuart Chait, have made it on to the short list of buyers of the V&A Waterfront from Transnet.

Big overseas funds are among the bidders, but Investec's David Tew, who is administering the offers, will not reveal who made them.

Bidders had to indicate a good price and show that they had the means to pay it to get onto the list. The FM understands the top bids are between R6bn and R7bn.
The successful bidder will be getting a R230m annual net income from the already completed development. This initial yield of less than 4% indicates that the V&A is seen as a trophy property that is unlikely to enhance any investor's income for some years. More income would have to come from another 250 000 m² of further allowable development and rent increases.
Successful bidders will have to submit an irrevocable offer by September 5 and the winner will be chosen by September 15.

Or not; Transnet and its pension funds reserve the right not to sell to any bidder, giving them the opportunity to use the bidding as a pricing exercise and renegotiate with the buyer of their choice, or to list the V&A on the JSE.