|
SAC
SAC
SAC - SA Corp - Press Releases
SA Corporate Real Estate Fund
(formerly Martprop Property Fund)
(Incorporated in the Republic of South Africa)
Share Code: SAC ISIN Code: ZAE000083614
A Collective Investment Scheme in property registered in terms of the Collective
Investment Schemes Control Act, No. 45 of 2002 and managed by SA Corporate Real
Estate Fund Managers Limited (formerly Marriott Property Fund Managers Limited)
(Registration number 1994/009895/06)
("SA Corp" or "the fund")
SA CORPORATE REAL ESTATE FUND LIFTS DISTRIBUTION BY 18%
SA Corporate Real Estate Fund has declared a distribution of 12 cents per unit
for the five months to December 2006. This is 18% more than the comparative five
month period in 2005.
Announcing results for the five months, following a change in year-end to
December, SA Corporate said net property income from its R3 billion portfolio
for the period increased to R130,6 million from R87,1 million with distributable
income at R86,9 million against R73,7 million in the comparable 2005 period.
Roger Perkin, managing director of SA Corporate, said that industrial market
rentals continued to show positive growth as a result of the consistent
contraction in available space and the high costs of new development.
"SA Corporate is well positioned to benefit from this growth and the fund`s
substantial industrial portfolio has performed ahead of management`s
expectations. There is currently no vacant space in the industrial portfolio
and the average gross rental of R26/mSquared in the portfolio is considered to
be below market. This gives rental upside on the expiry of leases."
Perkin said the office market had also enjoyed a high level of tenant demand.
"Rentals in the preferred nodes reflect the fact that the longstanding
oversupply of office space has been absorbed. Demand for new office
developments is supporting this strong rental growth, which has had a positive
influence on rentals in the secondary nodes. The fund currently has a
relatively low weighting to office property and intends to increase the office
portfolio. The current market offers investment opportunities where attractive
yields are supported by rentals with good growth potential. "
Perkin said that notwithstanding the recent interest rate increases, strong
consumer spending had resulted in retail sales climbing further and market
rentals had continued to strengthen on the back of higher turnovers.
The standing portfolio, excluding sales, developments and acquisitions was
independently valued at 31 December 2006. Portfolio value increased by R426
million or 17% from July 2006. This reflected the positive rental growth in the
portfolio and the firming of capitalization rates.
Given the anticipated rental growth, prospects for distribution growth over the
next few years are encouraging, says Perkin. He said the fund`s exceptional
occupancy levels continued and, at 31 December 2006, the overall vacancy, by
area, was below 1%.
Craig Ewin, head of Listed Real Estate at Old Mutual Investment Group and an
executive director of SA Corporate, said that 70% of SA Retail`s unitholders had
irrevocably accepted the SA Corporate offer of 3.05 SA Corporate units for each
SA Retail unit. "Importantly this means that the key 90% threshold has been
achieved" he says.
"Investors in both SA Corporate and SA Retail have clearly seen the benefit of
the proposed consolidated portfolio with the SA Corporate price firming from
R3.55 a unit when the SA Corporate offer was made, to R3.99 a unit as at 21
February 2007. This translates into R12.17 per SA Retail unit based on the swap
ratio of 3.05. More than R550m incremental investor value has arisen since the
announcement of the offer.
The acquisition of SA Retail will be a very meaningful step in SA Corporate`s
strategic objective of transforming the fund into a substantial diversified
property portfolio with a market capitalization value amongst the three largest
in the listed property sector" says Ewin.
Durban
22 February 2007
Date: 22/02/2007 17:01:00 Produced by the JSE SENS Department.
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
