Killarney Mall purchase

Posted On Wednesday, 04 April 2001 03:01 Published by eProp Commercial Property News
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LISTED property group Gold Edge and property loan stock company Octodec Investments announced yesterday the acquisition of Killarney Mall, a prime shopping centre north of Johannesburg, for R235m.

Jeffrey WapnickThe deal, subject to certain conditions, sees Octodec acquiring 80% of Killarney Mall while the rest goes to Gold Edge.
Killarney Mall comprises 20800m² retail space and 10900m² office space.
Octodec MD Jeffrey Wapnick said Killarney Mall was located in an advantageous position between the central business district, where rents are depressed, and the far northern suburbs, where there is an oversupply of office space. The mall has been doing well in the past few years, with very low vacancy levels.
'Killarney Mall represents a blue-chip tenant mix with 75% national tenants, sustainable rentals and escalations,' said Wapnick.
The consortium has secured funding for the acquisition through a combination of cash and debt instruments.
These include mortgage finance of R185m, a loan by Octodec of R40m and another loan by Gold Edge of R5m. The remainder comes as cash from Gold Edge of R5m.
The conditions of the deal include approval by the Competition Commission, the JSE Securities Exchange SA and shareholders of the two companies.
Octodec said its strategy was to build a substantial A-grade portfolio of quality, well-positioned, income-producing properties. The group said the acquisition of Killarney Mall would help it to achieve appropriate critical mass.

Last modified on Thursday, 24 April 2014 09:53

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