Announcing results for the 12 months to March 31, which saw property acquisitions totalling R1,2 billion, SA Retail reported distributable earnings of 77,7 cents per linked unit – a 9,2% growth over the 71,2 cents for the 12 months to March 2006.  No distribution was declared.

Unitholders who accepted the offer from SA Corporate which now owns 99,8% of SA Retail units, waived their entitlement to a distribution for the period October 1 2006 to March 31 2007. The distribution will be paid to SA Corporate.

MD Peter Sparks said the successful offer by SA Corporate had seen significant value enhancement for SA Retail unit holders.

“The participation in a fund with a market capitalisation of more than R8 billion will bring additional benefits to SA retail unitholders.”

He said KwaZulu-Natal properties contributed R107,1 million in net rental income over the 12 months to March,  with R80,8 million and R23,6 million  earned by Gauteng and Western Cape properties, respectively.

He said the vacancy factor of the portfolio at March 31 had improved to  2,26%  from 2,3% in 2006 and the expense to income ratio was 29,8%, down from 32,1% in 2006.

“The fund’s major acquisition over the 12 months, the R1,025 billion Sharemax portfolio of 10 shopping centres, is currently being managed by Old Mutual Investment Group Property Investments with a view to extrapolating value from the underlying portfolio.“

The Sharemax portfolio was acquired from March 1 at a projected yield of close to 9%.

Other acquisitions  included the R66,6 million Willow Way centre, Pretoria; Dube Village shopping centre, a R44,5 million investment in Kwa Mashu, Durban;  the R88 million Hubyeni Shopping Centre at Elim, Limpopo; and the R90 million Philani Valley Mall, under construction in Umlazi, Durban. 

Developments in the portfolio included Umlazi Mega City, a R165 million venture with SA Corporate,  Pine Walk Centre, Pinetown, in partnership with Vukile Property Fund,   and expansion of The Bluff Shopping centre, Durban, and of Highland Mews, Witbank. Properties worth R170 million were sold over the 12 months.

Sparks said an announcement regarding the compulsory acquisition of  remaining SA Retail linked units would be made on Friday, May 11. The listing of SA Retail linked units on the JSE would be suspended from May 14, with termination of the listing anticipated for June 29.