Sycom set to boost portfolio

Posted On Thursday, 25 July 2002 10:01 Published by Commercial Property News
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Property unit trust Sycom is to boost its portfolio to about R1,4bn through the acquisition of five properties located in the north of Johannesburg for R215m.

PROPERTY unit trust Sycom is to boost its portfolio to about R1,4bn through the acquisition of five properties located in the north of Johannesburg for R215m.

The acquisition would produce an average forward yield of 14%, said Chris Fleming, executive director of Corovest, the asset management company that manages Sycom.

Fleming said the tenant factor was given good attention in this transaction, as was evident in the blue-chip tenants in all five buildings.

The five buildings are Hewlett-Packard head office in Rivonia, Boogertman Krige Architects and Cisco at 15 Georgian Crescent in Bryanston, two Denel buildings in the Arivia.kom office park in Sunninghill, the Azisa head office in Ferndale and the Advocates Chambers in Sandown.

'All are excellent quality investments with no vacancies, and have good covenant tenants that offer a secured growing income stream,' said Fleming. He said the portfolio has leases running from three to seven years with escalations averaging 11%. He said the acquisition does not significantly modify the geographical spread of the Sycom portfolio, which is largely represented in Johannesburg and Cape Town.

Fleming said the transfer was expected to be concluded soon, and payment was to be effected in cash through the issue of paper of about 70% of the purchase price topped up with gearing.

The buildings provided solid earnings potential to add to the present forward income growth of Sycom, which reported revenues of R219m and a distribution of R144m in the financial year ended December last year.

Business Day
 


Publisher: Business Day
Source: Business Day

Last modified on Friday, 14 June 2013 22:34

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