Vukile Property Fund Limited - Major Vukile Invest
Vukile Property Fund Limited - Major Vukile Investment In Shopping Centre
Expansion
Vukile Property Fund Limited
(Incorporated in the Republic of South Africa)
(Registration number 2002/027194/06)
JSE code: VKE
ISIN: ZAE000056370
MAJOR VUKILE INVESTMENT IN SHOPPING CENTRE EXPANSION
Johannesburg, 6 October 2005 - Property loan stock company Vukile today
announced that it is to spend close to R80 million on expanding and upgrading
its Phoenix Plaza and Dobsonville shopping centres.
The gross lettable area at Phoenix Plaza is to be increased by approximately 3
500m2 and that at Dobsonville by nearly 5 000m2. MCH Properties has been
appointed as turnkey developer for the expansion project, which is expected to
deliver an initial net yield of about 11%. Construction will start in January
and should be completed by August 2006.
Vukile chief executive, Gerhard van Zyl, said that given the high current level
of property prices, the company believed it was better to redevelop, expand and
upgrade its existing properties than to acquire new ones, particularly as its
portfolio has the potential for significant organic growth. He said they were
already investigating a number of similar projects.
"The expansion projects have been designed to add value and lower the risk
profiles of these two centres," van Zyl said. "It will increase their national
tenant base and enhance their status as a destination shopping experience;
improve the average lease term, adding further security to the sustainability of
cash flow and income growth; and protect them against future competitive
developments in their catchment areas."
The Vukile portfolio currently comprises 52 properties throughout the country
with a gross lettable area of 676 961m2. The company also holds some 75% of
MICC Property Income Fund, which owns 40 properties with a gross lettable area
395 812m2.
For further information call
Gerhard van Zyl, CEO Vukile Property Fund Limited
on (011) 288 1002
Issued by du Plessis Associates on behalf of Vukile Property Fund Limited.
dPA contact Helen McKane Tel : +27 11 728 4701, Fax: +27 11 728 2547, Mobile:
082 330 2034 or e-mail: vukile@dpapr.com
Date: 06/10/2005 03:21:26 PM Produced by the JSE SENS Department
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