| Thu 24 Apr 2008, 13:27 | | SAC - SA Corporate Real Estate Fund - Tenant expan |
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SAC
SAC
SAC - SA Corporate Real Estate Fund - Tenant expansion boosts SA Corporate
Industrial exposure
SA Corporate Real Estate 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
(Registration number 1994/009895/06)
("SA Corporate")
TENANT EXPANSION BOOSTS SA CORPORATE INDUSTRIAL EXPOSURE
Industrial developments costing R330 million, including additional facilities
for existing tenants, Bell Equipment and Supply Chain Services, are under way in
Johannesburg and Cape Town for SA Corporate Real Estate Fund, the country`s
third largest listed property fund.
The expansion projects for Bell Equipment and Supply Chain Services, part of the
Fuel Logistics Group, are in Jet Park, the premier Gauteng industrial estate,
says Peter Sparks, executive director of the fund which is managed by Old Mutual
Investment Group Property Investments.
He says a R190 million, 18 800mSquared facility for Bell Equipment on a 9,2 ha
site it has leased since 1995, will provide a distribution warehouse and
ancillary parts and exchange store, component repair workshop, preparation and
paint bays, and offices.
"It is due for completion in October 2008 and will be leased for 12 years. Bell
Equipment will also extend the lease it has on an adjacent property to expire at
the same time as that for the new facility.
"The R57 million development of a 10 000mSquared sortation hall for Supply Chain
Services, on a 10-year lease, is due for completion in June. It is
complementary to their adjacent distribution facility and offices. It
represents a joint initiative, along with a 30 000mSquared distribution
warehouse being developed by Old Mutual Investment Group Property Investments,
to provide for Supply Chain services expansion in Jet Park."
Sparks says Old Mutual Investment Group Property Investments is also overseeing
a development in Cape Town, due for completion in September on a 31 247mSquared
site in Milner Road, Paarden Eiland.
Seven warehouses with offices and ranging in size from 1 500mSquared to 3
450mSquared are being built for letting on the open market. Tenant interest is
currently strong.
"This distribution park will increase SA Corporate`s exposure to the Western
Cape market and will benefit from the demand for industrial property close to
Table Bay harbour. "
Sparks says retail projects to meet demand from national operators in growing,
under-serviced areas are progressing in Hammanskraal, Tshwane (Renbro Shopping
Centre), Dzanani, Limpopo (Nzhele Shopping Centre) and Umlazi, Durban (Philani
Valley Shopping Centre).
"They follow the creation of Hubyeni Shopping Centre at Elim, Limpopo, and
Umlazi Mega City in Durban which have similar tenant profiles to the new
projects and which have seen favourable rental and capital growth since opening
in 2006 and 2007 respectively."
The Renbro Shopping Centre on the old Warmbaths road in Hammanskraal is being
transformed into a superior community shopping centre and will be anchored by a
2 000m2 SuperSpar . It is due to open in September. The Philani Valley Shopping
Centre will serve the needs of Umlazi residents beyond the catchment area
associated with Umlazi Mega City.
National tenants account for most of the space in the first phase of 32 stores
over 10 900mSquared. It will be anchored by a 2 600mSquared SuperSpar and is
due to open in August.
The R43 million Nzhelele Valley Shopping Centre, in the Dzanani district, 35
kilometres from Makhado (Louis Trichardt), Limpopo, will open shortly and will
serve a catchment area of 19 000 households. Anchored by a 1 584mSquared Spar
store, it has 37 shops, mostly tenanted by national chains. Spar has reported
very favourable trading since opening and this investment will yield 9,5% in
year one.
Sparks says The Colony, a centre in Hillcrest, Durban, is being revamped. It
has attracted major new tenants.
Ends
Contact Peter Sparks
082 462 5887
031 366 11 22
Date: 24/04/2008 13:27:00 Produced by the JSE SENS Department.
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