Emira Property Fund is over the halfway mark in selling the 282 apartments in its office-to-residential conversion, The Bolton in Rosebank, Johannesburg.
The REIT’s invested R125 million in the conversion of the former office building worth some R80 million at the time. It has earned an average of R17 million of income every year from the asset since the redevelopment started welcoming tenants in late 2018. Now, on exit on a sectional title basis, the total sales price for the 282 units is expected to be close to R327 million.
Unit sales are progressing well with Emira’s appointed specialist partner IGrow having launched sales in October 2022. 149 units were transferred by the end of August 2023 and with another 69 units under agreement, Emira anticipates the development to be sold out within the next 12 to 18 months.
The demand is supported by the strong rental market in Rosebank, on an individual, sectionalised basis, and Emira will use the capital to acquire the minority interest in Transcend Residential Property Fund that it already doesn’t own, as signaled in its recent Scheme of Arrangement announcement. The company is also parking the proceeds in its revolving debt facilities.
Emira recently gained control of Transcend, which means its residential assets now comprise around 15% of its total assets, which is on the higher end of its preferred allocation of 10% to 15%.
The development is a joint venture with the Feenstra Group.