Managing director Peter Sparks says a Superspar of 3 000m², owned and managed by Philip Snyman (of Thoyando Spar fame) on a 10-year lease, will anchor the 12 684m² centre which will provide an initial yield of not less than 9,5%.
“Tenant demand is extremely positive, with a 93% commitment to space seven months before opening. More than 70% of tenants already signed are national chains including Spar, Tops, Jetmart, Pep, FNB, Standard Bank, JD Group, Ellerines, SA Post Office etc.”
“The centre will serve a thriving and growing community which currently lacks formal retail facilities. A detailed demographic analysis was carried out last year from which the findings strongly supported a centre to satisfy an area with an estimated total annual spend of more than R200 million.
”Sparks says the centre will enhance SA Retail earnings and this will further improve through anticipated growth in the property. Hubyeni has favourable rental growth prospects over a five-year horizon.
He says the centre is the first of 8 turnkey shopping centres anchored by Spar which SA Retail may acquire, subject to approvals, for R700 million over the next four years from Kerr Developments of Pretoria.
It is proposed to fund the acquisition through the issue of SA Retail units next April.
