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SA Retail Assets Set To Top R3,1 Billion With Acquisition Of Sharemax Portfolio

Posted On Wednesday, 22 November 2006 02:00 Published by eProp Commercial Property News
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SA Retail Properties Ltd will proceed with the R995,8 million acquisition of 10 properties from a portfolio administered by Sharemax Investments (Pty) Ltd.

Willie Botha SharemaxAnnouncing this in a detailed cautionary announcement following completion of due diligence on the 10 properties, SA Retail said the acquisition, which is subject to unit holder and regulatory approvals, will boost its asset base from R2,2 billion to more than R3,1 billion at an incremental cost of R8 597/m².

It will be settled by an issue of new SA Retail linked units in terms of a vendor placement, at a price to be finalized. The purchase price of one of the properties is under discussion and may be amended.

SA Retail said the 10 properties, independently valued at R998 million, have a gross lettable area (GLA) of 115 834 m², and an expected forward yield of 8,8%. Three quarters of this GLA - 98% retail space and 2% offices – is in Gauteng, with 16% and 8% in the Cape and Kwa-Zulu Natal respectively. The portfolio vacancy at the valuation date was estimated to be 3,8%. Anchor and national tenants occupy 54% of the GLA.

The three top-priced properties are North park Mall, Pretoria North (R202,3 million); Comaro Crossing, Oakdene, Johannesburg (R181,3 million); and Montana Crossing, Pretoria (R167,3 million).

The seven other properties are: Davenport Square, Bulwer, Durban (R111,9 million); St George’s Square, George (R89,6 million); Midway Mews, Halfway Gardens, Midrand (R75 million); Atterbury Décor, Faerie Glen, Pretoria (R68,6 million); Van Riebeeckshof, Bellville, Cape Town (R43,6 million); Clubview Corner, Centurion (R33,8 million); and Omniplace, Bellville, Cape Town (R22, 6 million).

SA Retail said the acquisition will continue to improve the overall quality of its property portfolio and will diversify the overall risk without significantly changing sectoral or regional composition. SA Retail said it is confident that with a focused leasing strategy the vacancy level within the portfolio can be reduced. Furthermore, with aggressive utility recoveries and selected refurbishment and redevelopment implementation, the portfolio will yield favorable earnings growth prospects.

A further announcement will be made on the financial effects of the acquisition on SA Retail.

Last modified on Monday, 28 April 2014 12:25

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