| Thu 27 Jun 2002, 0:00 | | Shops For Africa Buying PE Centre For R52,6 Millio |
|
Shops for Africa Ltd, the JSE-listed property loan stock company which
focuses on investing in properties serving C and D income consumers, is to
acquire the Cleary Park Shopping Centre in Port Elizabeth for R52,6 million.
The deal which requires JSE approval for the listing of 11,2 million new
Shops for Africa linked units, issued at 255 cents each, will mean BoE Ltd,
the ultimate vendor, will join Nedcor Investment Bank, Investec, Rand
Merchant Bank and Marriott as institutional shareholders in the company.
Shops for Africa will pay R24,1 million in cash and R28,5 million through
the issue of the new linked units for the property.
Anton Botha, managing director of Catalyst Property Asset Managers, which
manages the SFA portfolio, says that the acquisition is in line with the
company`s stated objective of acquiring suitable properties which would
increase its market capitalisation on the JSE, and which in turn should lead
to improved tradability and liquidity for Shops for Africa linked unit-
holders.
"The acquisition is in line with SFA`s objective of acquiring focused retail
properties servicing the C and D income groups and will be positive for
earnings per linked unit."
Botha says the acquisition of Cleary Park will improve SFA`s geographic
spread of properties by providing an exposure to the Eastern Cape and a
growing catchment area where some 50 000 jobs are expected to be created
through the Coega harbour development.
"It will increase the national tenant representation in the SFA portfolio
from 55% to 58% and reduce the overall loan to value ratio from 59% to 57%
as well as the overall vacancies in the portfolio."
He says the centre, on a 10,5 ha site on Stanford Road with a total lettable
area of 24 000m2, generates an initial net income yield of 15,3%.
"The centre includes 45 000m2 of excess land for future development. It is
94% let, has 104 tenants, three-quarters of them national, and is anchored
by Shoprite whose lease runs to 2011. The lease expiry profile is
favourable, with leases representing no more than 20% of the rental income
expiring in any one year. "
- ends -
ISSUED FOR: Shops for Africa Ltd
BY: DeK&K Communication Consultants
INQUIRIES: Anton Botha/Ian Ringwood 021-683-7773
Mike Kerkhoff
DeK&K Communication Consultants
P O Box 2879 Cape Town 8000
Tel 27 + 21 + 4245280 Fax 27 + 21+ 4245290
mike@dkk.co.za
www.dkk.co.za
Date: 27/06/2002 03:27:15 PM Produced by the SENS Department
