SA Corporate’s CEO, Craig Ewin, said the acquisition boosted the fund’s portfolio to 197 properties with a total value of R8 billion, 33% being industrial, 60% retail and 7% offices.

He said the acquisition, in line with the fund’s expansion strategy, was being funded by new equity.  Management had secured irrevocable commitments by investors to take up the equity at a clean capital price of 395 cents.

“At a property yield of 8,15% the acquisition will be marginally earnings enhancing in the short term but offers excellent medium to long term benefits.  The properties are in sustainable and growing nodes in the major metropoles or large towns, with an excellent lease profile and tenancy.  They epitomise the investment philosophy of SA Corporate – long leases with some of South Africa’s leading national retail, industrial and office tenants with favourable rental growth prospects.”

SA Corporate Real Estate Fund is managed by Old Mutual Investment Group Property Investments (Pty) Ltd.