| Thu 2 Nov 2006, 9:07 | | Sa Retail Properties - Cautions again as interim i |
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SRL
SRL
Sa Retail Properties - Cautions again as interim income Grows 13,7%
S A RETAIL PROPERTIES LIMITED
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
(REGISTRATION NUMBER: 1999/025764/06)
(JSE CODE: SRL & ISIN CODE: ZAE000034328)
("SA RETAIL" OR "THE COMPANY")
SA Retail Properties Ltd lifted distributable income from its R2,2 billion
portfolio by 13,7% from 32,95 to 37,47 cents per linked unit for the six
months to September.
Posting interim results today, the property loan stock company also
announced BEE partners and said a relationship agreement covering the
obligations of the parties would be signed shortly.
The SA Retail board was confident the partners would play a meaningful role
in furthering the company"s strategic and transformation objectives with
their property skills and experience as well as excellent relationships
with capital market players.
SA Retail again cautioned unit holders on dealing since it was still in
negotiations. SA Retail said a circular detailing the effects of the
proposed R1 billion acquisition of properties from Sharemax Investments (
Pty ) Ltd would be distributed to unitholders shortly. The acquisition,
still subject to certain conditions and statutory approvals, is one of
five proposals, with an investment value of R1,2 billion, approved by the
SA Retail board.
Others are the R43 million Dube Village Shopping Centre in Durban; the R11
million Summer Cottage in Fourways, Gauteng; the R86 million Hubyeni
Shopping Centre opening in April in Elim, Limpopo, and the R92 million Axiz
IBG property in Midrand.
The Hubyeni Centre investment is the first of a number of turnkey shopping
centre projects anchored by Spar which SA Retail may acquire, subject to
approvals for R700 million over the next four years.
Managing director Peter Sparks said more than half of the net rental income
for the period came from KwaZulu/Natal properties (R47 million) with
Gauteng (R35 million) and Western Cape (R12 million) contributing the
remainder.
He said the portfolio vacancy factor at September 30 was 2,7% and the
expense-to-income ratio of 31% is lower than 32% in the previous financial
year.
Sparks said SA Retail"s major development projects are expected to
contribute positively to earnings in 2007 and 2008.
These projects, with returns of up to 13%, include:
the R170 million Umlazi Mega City, a Durban regional shopping centre which
opened in April 2006
the R59 million Pine Walk Centre, a value centre in Pinetown owned jointly
with Vukile Property Fund, opening in November 2006
a R78 million fully let redevelopment of the Bluff Shopping Centre, Durban,
and a R12,5 million development on the same site
a R41 million extension and refurbishment of Highland Mews, Witbank, which
had been given new life by the introduction of national stores with the
latest specifications.
Sparks said SA Retail, coupled with this investment activity, was well
positioned to take advantage of continued consumer confidence and increased
trading densities in the portfolio, provided the current upward trend in
interest rates did not temper current spending patterns.
He said capital expenditure of R77,3 million had been authorised for
redevelopment and improvements of existing properties. Investment
properties worth R172 million had been approved for disposal.
SA Retail sold properties for R33,5 million during the interim period. It
had borrowings, attracting interest at prime less 2,3% a year, of R138,5
million or 6,1% of asset value at September 30.
Ends
Date: 02/11/2006 09:07:15 AM Produced by the JSE SENS Department
