Sizafika announces R581m acquisition

Posted On Friday, 27 October 2006 02:00 Published by
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Sizafika Property Investments Limited has announced that it has concluded agreements to acquire 67 commercial properties from various vendors for R581m
 
JSE Listed Sizafika Property Investments Limited (SZA), which has been restructured from the shell of knitwear company Adonis, announced that it has concluded agreements to acquire 67 commercial properties from various vendors for 581 million rand.
 
Sizafika is forging ahead with its plans to transfer from the 'Personal Goods' subsector of the JSE Limited to the 'Financial Services - Real Estate' sector, which will be pursued after the transfer of the property portfolio, and the company has also announced its intention to enter into a BEE agreement as well as an asset and property management agreement.
 
"The acquisitions will provide an initial base for Sizafika from which to grow its portfolio while simultaneously yielding sustainable returns and cashflows for investors," said Sizafika CEO Bryan Smith. "The medium term target is to acquire a 2 billion rand portfolio."
 
The properties have been acquired at an average forward yield of 11.95%, which is forecast to result in an annualised distribution yield of 11% or 33 cents per Sizafika linked unit at the 300 cents issue price. The properties have been valued at a total amount of 589.8 million rand by Galleon Valuation Services (Pty) Limited, an independent external valuer.
 
The properties are mostly B- and C-grade commercial buildings, with some A-grade properties, including office, industrial and retail buildings, comprising a total gross lettable area of 310,141m2, of which vacancies total only 3.9%.
 
I-Net Bridge
Publisher: I-Net Bridge
Source: I-Net Bridge

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