04 Feb 2013
Leading commercial property management company, Broll Property Group, has sold a portfolio of mainly local shopping centres to Johannesburg Stock Exchange listed Fairvest Property Holdings Limited for R326 million.
Sean Berowsky, national property investments specialist at Broll, says the deal is an exciting one for Fairvest, which will provide them with the ability to grow the fund in the near term in a sector of the market that has seen frenetic deal-making with a spate of new listings entering the market in the last 18 months.
Berowsky says the deal is consistent with Fairvest’s growth strategy of focusing on retail assets with a low-LSM bias and non-metropolitan weighting, while SA Corporate said the disposal would allow it to manage its resources more optimally by concentrating on its larger property assets.
Tokai Junction Shopping Centre, one of two Western Cape properties, is the sole high-LSM sale, selling for R84.9 million.
It has a gross lettable area of over 7 600 square metres and an average gross rental of R108 per square metre
OmniPlace in Bellville is the only office building in the portfolio, selling for R20 million.
Fairvest took transfer of eight of the properties in the portfolio in December 2012 with three more to follow within the next few weeks.
An additional two properties are subject to a put option worth approximately R41.5 million. Subject to the fulfilment of certain conditions, Fairvest could take transfer of the additional properties in March.
The first tranche was sold at an initial yield of 10.25 percent.
House for sale in Riversdale R 740 000
House for sale in Goedemoed R 1 295 000
House for sale in Soshanguve East R 370 000
House for sale in Silverton R 1 400 000
Townhouse for sale in Norkem Park R 940 000
Apartment / Flat for sale in Grove End R 380 000
Apartment / Flat for sale in South Beach R 360 000
Apartment / Flat for sale in South Beach R 275 000
Apartment / Flat for sale in South Beach R 450 000
Apartment / Flat for sale in Vredehoek R 1 695 000
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