SA Reit CEO Arnold Maresky said yesterday the company had sold a 50% undivided share in the property site to Redefine for R51,7m and that the two companies would jointly redevelop it into an office block.

He said the electricity supply crisis would not affect the development as the site had existing supply.

Maresky said the site consisted of two properties that are being consolidated into a single development.

Four separate buildings would be partially

“Some of the older buildings are being incorporated into the new design,” he said.

The site was originally acquired by SA Reit in October. Maresky said it was strategically located opposite the Investec and Edward Nathan Sonneberg buildings. “This node is regarded as the main hub of the CBD,” he said.

The development, which will provide 2000m²² of offices, is expected to be completed in the first quarter of 2010. Construction is expected to begin in June.

“We are negotiating with major tenants who are interested in taking up a large proportion of the space,” Maresky said.

Madison Property Fund Managers, the asset managers of Redefine, had been appointed by Redefine as co-development partners and managers of the scheme with SA Reit.

He said SA Reit had always had a close relationship with Madison executive director Mike Flax, and the Redefine board. “This development is aimed at pooling the skills and resources of the two entities.”

He said it was anticipated that the disposal of the half share in the properties to Redefine would be effective by no later than April 30.

The proceeds would be used to reduce SA Reit’s long-term borrowings.

The company was previously called Shops For Africa before it relisted on the JSE as SA Reit on October 8.