JSE-listed Investec Property Fund Limited recently announced its latest agreements with various vendors, to acquire 9 commercial properties for a total purchase consideration R452, 9 million.
This variable loan stock company indicated that the purchases in respect of this amount are going to be funded through borrowing.
The commercial properties comprise of the “Martin & Martin” industrial property in Kempton Park, with a Gross Lettable Area (GLA) of 19,972m2, the “Bigen Africa” A-grade office building in Pretoria with a GLA of 5,545m2, a retail property in Khayelitsha with a GLA of 2,911m2, and 6 other stand-alone, big box-type retail properties across South Africa with a total GLA of 38,475m2. 72% of the big-box retail rental portfolio income comes from the Boksburg and Pretoria East areas.
The properties to be acquired by Investec Property Fund Limited are structured as triple net leases.
According to the Investec Property Fund Limited team, these acquisitions aim to extend the company’s property diversification into retail, industrial and office sectors. Furthermore, the move is ultimately a part of the company’s quest to achieving their objective which is to build a portfolio that sustains growth in distributions for its unitholders.