SA Retail Properties Ltd (SRL) has already received support from more than 50% of its unitholders to vote in favour of the acquisition of the 1.025 billion rand Sharemax portfolio at a meeting later in March. This coupled with the recent Competition Commission approval ensures the transaction is unconditional.

Peter Sparks, SA Retail's managing director, said a further step towards the successful execution of the acquisition had been the placing of units in a vendor placement to fund the purchase.

Craig Ewin, Head - Listed Real Estate - Old Mutual Property Investments says: "There were written subscriptions for approximately twice the 1.025 billion rand that we were looking to place on behalf of the vendor. This has unfortunately meant that subscribers will not receive their full application. All subscribers will receive the first 50 million rand of their application, with the rest of the available units pro-rated according to subscription value.

"In terms of the proposed offer by SA Real Corporate Real Estate Fund for all the linked units of SA Retail, these newly issued SA Retail units will be exchanged for SA Corporate units when that acquisition is finalised."

The SA Corporate offer is 3.05 units for each SA Retail linked unit.

Sparks said the placing was conditional on support for the Sharemax acquisition from more than 50% of SA Retail unitholders. It was also conditional on support from more than 50% of SA Corporate unitholders for the acquisition of the linked units in SA Retail and on SA Corporate gaining more than 90% acceptance of its offer to SA Retail unitholders. This has been achieved.

He said the Sharemax portfolio of 10 properties matched SA Retail's investment profile.

"They are typically convenience, neighbourhood shopping centres and large value centres, located primarily in South Africa's three major metropolitan areas. The centres are all in thriving and growing residential communities, and serve strong primary catchment areas.

"The properties have a strong national tenant composition, which again suits the SA Retail profile of at least 60% anchor and national tenants. "

Sparks said the Sharemax acquisition, effective from March 1, 2007, would enhance the overall geographic spread of the existing SA Retail portfolio.

"This has been overweight in Kwazulu-Natal and underweight in Gauteng. The Sharemax portfolio has a 76% Gauteng component, with only 8% located in KZN bringing SA Retail's spread to 43% in Gauteng and KwaZulu Natal, with the remaining 14% in the Western Cape.

"The Sharemax portfolio presents value extraction opportunities through the pro-active management of underlying properties. The portfolio has a high percentage of leases expiring over the next two years and many are considered to be below market rentals. The Sharemax portfolio has a through rental of R65/m2, while the existing SA Retail portfolio has a through rental of R85/m2."

The three top-priced properties in the Sharemax portfolio are:

Northpark Mall, Pretoria North (R202.3 million)

Comaro Crossing, Oakdene, Johannesburg (R181.3 million)

Montana Crossing, Pretoria (R197 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 Decor, Faerie Glen, Pretoria (R68.6 million)

Van Riebeeckshof, Bellville, Cape Town (R43.6 million)

Clubview corner, Centurion (R33.8 million)

Omniplace, Bellville, Cape Town (R22.6 million).

I-Net Bridge