Delta Property Fund has entered into an agreement with The Independent Institute of Education Proprietary Limited t/a Property Division, represented by Jean Didier Raico Oesch and/or Vongani Pilate Mbhokota, to dispose of Delta House, on the corner of Pretorius and Thabu Sehume Streets in Pretoria, for R74 million.
As part of the REIT’s strategy to optimise its portfolio, the board has agreed to dispose of certain assets which are no longer ‘strategic’ to its operations.
Valued at R82.1 million as at the 28th of February 2021, the 11-storey, multi-tenant office asset has a gross lettable area of 11 439m2.
The net proceeds of R72.5 million will be utilised by Delta to reduce its loan-to-value (LTV) from 56.5% (as of 28 February 2021) to 55.3% and to reduce its vacancy levels by 0.6% from 23.6% (28th of February 2021) to 22.9%.
Subject to conditions precedent, the effective date of the disposal has been benchmarked for late February 2022.