ApexHi Acquires Retail Property in George, Sells Rivonia Square

Posted On Monday, 01 October 2007 02:00 Published by eProp Commercial Property News
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ApexHi has purchased the 11,000m2 Game Gardens retail development in George for R87,5-million at an initial yield before gearing of 10,27%. At the same time, ApexHi has sold its Rivonia Square shopping centre to Sharemax for R196-million at an 8,2% yield

David RiceApexHi MD David Rice says the company purchased Rivonia Square in February 2005 and has now sold it to realise a R37-million profit after only two years.

The centre was upgraded with new tiles, internal lighting, new shop fronts, and bathrooms.  In addition ApexHi paid for the installation of a new traffic light on the corner of Rivonia Boulevard and 9th Roads, and curbing was constructed to improve access and egress from the centre.

The tenant mix was reconfigured including replacing a night club with a 5,000m2 Planet Fitness gym, with swimming pool and running track.

Rice says ApexHi received a good offer for the property which does not strictly fit the profile of its retail portfolio. “The majority of ApexHi’s retail centres are neighbourhood and commuter market centres, such as our new Game Gardens centre which fits the profile of the retail portfolio,” he says.

Game Gardens is anchored by Game and Checkers with leases that run through to end May 2009. Rice says the local demographics in terms of population, income and growth are good.

“Located in one of the fastest growing municipalities in the country, the purchase expands ApexHi’s limited investment in the Garden Route area. We believe the substantial development taking place in the region will benefit retail in George, which is a major support town for the area,” says Rice.



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