| Thu 26 Apr 2007, 10:51 | | SAC - SA Corporate - Cullinan acquisition planned |
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SAC
SAC
SAC - SA Corporate - Cullinan acquisition planned for SA Corporate Portfolio
SA Corporate Real Estate Fund
(formerly Martprop Property Fund)
(Incorporated in the Republic of South Africa)
Share code: SAC & ISIN code: ZAE000083614
A Collective Investment Scheme in property registered in
terms of the Collective Investment Schemes Control Act,
No. 45 of 2002 and managed by
SA Corporate Real Estate Fund Managers Limited
(formerly Marriott Property Fund Managers Limited)
(Registration number 1994/009895/06)
("SA Corporate" or "the Fund")
CULLINAN ACQUISITION PLANNED FOR SA CORPORATE PORTFOLIO
SA Corporate Real Estate Fund is proposing to add Cullinan Jewel Shopping
Centre, a recently upgraded neighbourhood complex in Cullinan, 50 km east of
Pretoria, to its current R2,3 billion portfolio. This R45,2 million acquisition
will further increase SA Corporate`s retail portfolio, which is due to be
boosted through the imminent acquisition of all the SA Retail linked units in
issue.
Roger Perkin, managing director of SA Corporate, says the acquisition of the 6
052m2 centre will be funded through an issue of new SA Corporate units.
"The acquisition of the Cullinan Jewel centre will increase our exposure to
areas where we have not previously been invested. It will be at a projected
initial yield of 9,2% and will enhance SA Corporate`s projected earnings in the
short to medium term. A head lease has been secured with the seller to
guarantee that yield in the first 12 months after acquisition."
Perkin says the centre, anchored by a well supported Spar store on a lease to
2016, will be bought from Kerr Developments of Pretoria. SA Retail, which will
be consolidated with SA Corporate, previously bought Willow Way Shopping Centre,
in Lynwood, Pretoria, last June for R65,5 million and Hubyeni Shopping Centre in
Elim for R86 million from the same vendor.
These acquisitions follow an agreement between Kerr and SA Retail which could
now see SA Corporate acquire a number of turnkey retail centre developments,
anchored by Spar, with a total investment value of R700 million over the next
four years.
Perkin says the Cullinan Jewel centre is in the Dikoneng area, one of Gauteng`s
Blue IQ initiatives aimed at establishing a premier tourist destination.
"Cullinan Jewel is well let, with favourable line shop demand, and in a stable
residential community which is expected to continue to provide loyal patronage.
The prospects for rental growth over five years are favourable, with a projected
annual average of 7%."
26 April 2007
Date: 26/04/2007 10:51:01 Produced by the JSE SENS Department.
