Investec Property Fund announces the conclusion of two major office portfolio acquisitions, namely the Nicol Main and the RPP portfolios announced late last year. The two portfolios comprise a total of 21 individual buildings with the final purchase considerations being R302 million and R555 million respectively.
The properties are spread mainly over four quality office parks in prime locations including Bryanston, Constantia Kloof, Lynwood Road and Tyger Valley in the Western Cape and the portfolio is over 98% let to a quality tenant base of major corporates such as Clover, Yum Foods, JLT Insurance and Continental Outdoor Media.
Fund CEO Sam Leon commented: “We are particularly pleased with these acquisitions. Importantly, properties which represent close to 50% by value of the total acquisition price of R857 million are located in the absolute core of the Bryanston node. These front onto the Nicol Highway where the Fund is already invested. We believe this node to be one of the best growth areas in Gauteng, as evidenced by the recent influx of big brand retail and high profile corporate head offices into the area.”
The funding for the acquisitions was put in place and fully hedged at the time of the announcements in October and November 2013.
“These transactions will bring the Fund’s total assets to over R6 billion. Gearing will however remain low, at approximately 20%, due to the R600 million raised by way of an accelerated book build in December last year. The Fund thus retains its significant headroom to pursue the right acquisition opportunities in 2014,” added Leon.