SRL
SRL
SA Retail Properties - R86 Million Limpopo Centre for SA Retail Properties
SA Retail Properties
Share Code: SRL
ISIN: ZAE000034328
R86 MILLION LIMPOPO CENTRE FOR SA RETAIL PROPERTIES
SA Retail Properties Ltd is set to make its first investment in Limpopo - the
R86 million Hubyeni Shopping Centre opening next April in Elim, a town 13km
south east of Makhado (formerly Louis Trichardt).
Managing director Peter Sparks says a Superspar of 3 000m2, owned and managed by
Philip Snyman (of Thoyando Spar fame) on a 10-year lease, will anchor the
12 684m2 centre which will provide an initial yield of not less than 9,5%.
"Tenant demand is extremely positive, with a 93% commitment to space seven
months before opening. More than 70% of tenants already signed are national
chains including Spar, Tops, Jetmart, Pep, FNB, Standard Bank, JD Group,
Ellerines, SA Post Office etc."
"The centre will serve a thriving and growing community which currently lacks
formal retail facilities. A detailed demographic analysis was carried out last
year from which the findings strongly supported a centre to satisfy an area with
an estimated total annual spend of more than R200 million."
Sparks says the centre will enhance SA Retail earnings and this will further
improve through anticipated growth in the property. Hubyeni has favourable
rental growth prospects over a five-year horizon.
He says the centre is the first of 8 turnkey shopping centres anchored by Spar
which SA Retail may acquire, subject to approvals, for R700 million over the
next four years from Kerr Developments of Pretoria.
It is proposed to fund the acquisition through the issue of SA Retail units next
April.
11 September 2006
Sponsor: Exchange Sponsors (Pty) Ltd
Date: 11/09/2006 04:42:31 PM Produced by the JSE SENS Department
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