ISIN : ZAE000031241
Share Code : SFA
February 7, 2002
Shops for Africa, the focussed retail property company that listed in the
JSE property loan stock sector in July 2001, is aiming to more than treble
the value of its portfolio to R1 billion. Investec, Nedcor Investment Bank,
Shoprite, Marriott and RMB Asset Management are its major shareholders.
Anton Botha, managing director of Catalyst Property Asset Managers, which
manages the portfolio, says a new tranche of retail properties is being
assembled to boost Shops for Africa's assets from the listing value of R320
million to approximately R650 million.
"The proposed acquisitions, as stated in a cautionary announcement, are at
an advanced stage of negotiation. They are in line with the company's short
to medium-term objective of increasing the size of the portfolio to R1
billion. The aim is to improve the liquidity and tradability of Shops for
Africa linked units through a larger shareholder base.
"The acquisitions are substantial properties, with a high proportion of
national retailers as tenants and an attractive lease expiry profile. These
shopping centres will have the added effect of reducing the debt-funding
ratio of the portfolio, bringing it closer to the desired optimum level of
45%".
"Recent company results, posted by the various tenants that anchor SFA
shopping centres, have given us further reason to be confident that the
portfolio will return the forward yield stated in the prospectus, namely
15.9%."
Gil da Silva, head of research at the Catalyst Group, says Shops for
Africa's asset allocation will take into account the relative size of each
province as well as its growth prospects.
"The Shops for Africa portfolio will be constantly monitored and positioned
to optimise performance as economic events unfold.
"Despite AIDS and other challenges facing South Africa, economic growth over
the next ten years is forecast to substantially exceed that experienced in
the last two decades on average. We are accordingly projecting significant
growth in retail sales, particularly in durables. All the provinces will
benefit to a measure and we will therefore structure the SFA portfolio to
optimise its share of projected growth to the benefit of tenants, investors
and other stakeholders, including the local communities".
Botha adds: "It is also our intention to enhance Shops for Africa's exposure
in other African countries by investing in successful shopping centres that
have their leases denominated in US dollars".
ends
ISSUED FOR Shops for Africa/Catalyst
BY De Kock & Kerkhoff Communication Consultants
INQUIRIES Anton Botha 021-683-7773
Mike Kerkhoff 021-424-5280
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