| Mon 29 Mar 2004, 17:38 | | Paraprop acquires R40m Property |
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Paraprop - Paramount Acquires R40-Million Of Property
Paramount Property Fund Limited
(Incorporated in the Republic of South Africa)
(Registration number 1945/019928/06)
Share code: PRA
ISIN: ZAE000028577
("Paraprop")
Monday, March 29, 2004
Listed property loan stock company Paramount Property Fund Limited has acquired
three quality properties consisting of a retail centre and two office buildings
to the value of R42,2-million. These acquisitions come shortly after the Fund
declared a distribution of 12,5c for the first quarter of 2004, which is 4%
higher than the same period last year. The acquisitions, which are spread
nationally, are aimed at further diversifying the portfolio and improving the
financial structure of the Fund.
The largest acquisition is the successful 13 000 square metre Goodwood Mall
shopping centre in the suburb of Goodwood, Cape Town, which was acquired through
a cash purchase of R27,5-million. The cash will be raised through the issue of
about 8 million linked units. Goodwood Mall is a well-known centre on the corner
of Voortrekker Road and McDonald"s Street, is fully let, and is anchored by Pick
"n Pay with the rest of the lettable space taken up by tenants such as Clicks,
Foschini, ABSA bank and other smaller convenience stores.
"The acquisition is in line with our strategy of growing our portfolio - and
this one in particular is in line with our objective of increasing the retail
component of the fund," says managing director of Paraprop, Rodney Squire-Howe.
The other two acquisitions are both well-positioned office buildings. The first
is a brand new building in a Cape vernacular design located in a themed business
park, `Zomerlust Landgoed" office estate in Paarl. The building is occupied by
PricewaterhouseCoopers (PwC) and is situated on Berg River Boulevard, one of the
main arterial roads entering Paarl. The R7,5-million cash acquisition is fully
let, with PwC leasing the building from Paramount until 31 March 2009.
The second acquisition, valued at R7,2-million, is that of the Tsebo Building
based in Arnold Road in Rosebank in the northern suburbs of Johannesburg. The
building is fully occupied by Tsebo Outsourcing Group, formerly the Fedics
Group. The low maintenance building is in a quiet, leafy street and Tsebo has
signed a long lease agreement until 30 April 2009.
"Both of the commercial property acquisitions are in well established areas,
with Paarl increasing in popularity as a decentralised business area, while
selected areas in Rosebank are being upgraded with key investments. Our latest
purchase follows on the acquisitions of some landmark office blocks in Sandton
and Claremont during the last quarter of 2003, and brings our recent purchases
to more than R150-million," Squire-Howe concluded.
ends
Contact: Paramount Property Fund Limited
Bruce Kerswill, director
(021) 659-5946; (083)-409-7058
For further information: Nicola Nel
Atmosphere PR
(021) 461-2117; (082)-459-2288
Date: 29/03/2004 05:22:03 PM Produced by the JSE SENS Department
