| Mon 5 Mar 2007, 15:17 | | SRL - SA Retail Gets Go-Ahead for R1 Billion Share |
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SRL
SRL
SRL - SA Retail Gets Go-Ahead for R1 Billion Sharemax Acquisition
SA Retail Properties Limited
(Incorporated in the Republic of South Africa)
(Registration number 1999/025764/06)
Share Code: SRL & ISIN Code: ZAE000034328
("SA Retail")
SA Retail Properties Ltd said today it had already received support from more
than 50% of its unitholders to vote in favour of the acquisition of the R1,025
billion Sharemax portfolio at a meeting later in March. This coupled with the
recent Competition Commission approval ensures the transaction is unconditional.
Peter Sparks, SA Retail`s managing director, said a further step towards the
successful execution of the acquisition had been the placing of units in a
vendor placement to fund the purchase.
Craig Ewin, Head - Listed Real Estate - Old Mutual Property Investments says
"There were written subscriptions for approximately twice the R1,025 billion
that we were looking to place on behalf of the vendor. This has unfortunately
meant that subscribers will not receive their full application. All subscribers
will receive the first R50 million of their application, with the rest of the
available units pro-rated according to subscription value.
In terms of the proposed offer by SA Real Corporate Real Estate Fund for all the
linked units of SA Retail, these newly issued SA Retail units will be exchanged
for SA Corporate units when that acquisition is finalised."
The SA Corporate offer is 3,05 units for each SA Retail linked unit.
Sparks said the placing was conditional on support for the Sharemax acquisition
from more than 50% of SA Retail unitholders. It was also conditional on support
from more than 50% of SA Corporate unitholders for the acquisition of the linked
units in SA Retail and on SA Corporate gaining more than 90% acceptance of its
offer to SA Retail unitholders. This has been achieved.
He said the Sharemax portfolio of 10 properties matched SA Retail`s investment
profile.
"They are typically convenience, neighbourhood shopping centres and large value
centres, located primarily in South Africa`s three major metropolitan areas. The
centres are all in thriving and growing residential communities, and serve
strong primary catchment areas.
"The properties have a strong national tenant composition, which again suits the
SA Retail profile of at least 60% anchor and national tenants. "
Sparks said the Sharemax acquisition, effective from March 1, 2007, would
enhance the overall geographic spread of the existing SA Retail portfolio.
"This has been overweight in Kwazulu-Natal and underweight in Gauteng. The
Sharemax portfolio has a 76% Gauteng component, with only 8% located in KZN
bringing SA Retail`s spread to 43% in Gauteng and KwaZulu Natal, with the
remaining 14% in the Western Cape.
"The Sharemax portfolio presents value extraction opportunities through the pro-
active management of underlying properties. The portfolio has a high percentage
of leases expiring over the next two years and many are considered to be below
market rentals. The Sharemax portfolio has a through rental of R65/m2, while the
existing SA Retail portfolio has a through rental of R85/m2."
The three top-priced properties in the Sharemax portfolio are Northpark Mall,
Pretoria North
(R202,3 million); Comaro Crossing, Oakdene, Johannesburg (R181,3 million);
and Montana Crossing, Pretoria ( R197 million).
The seven other properties are: Davenport Square, Bulwer, Durban (R111,9
million); St George`s Square, George (R89,6 million); Midway Mews, Halfway
Gardens, Midrand (R75 million); Atterbury Decor, Faerie Glen, Pretoria (R68,6
million); Van Riebeeckshof, Bellville, Cape Town (R43,6 million); Clubview
corner, Centurion (R33,8 million); and Omniplace, Bellville, Cape Town (R22, 6
million).
Ends
Contact
Peter Sparks - 082 462 5887
Craig Ewin - 083 441 0530
5 March 2007
Date: 05/03/2007 15:17:56 Produced by the JSE SENS Department.
