SA Corporate Real Estate Fund is proposing to add Cullinan Jewel Shopping Centre, a recently upgraded neighbourhood complex in Cullinan, 50 km east of Pretoria, to its current portfolio.

This R45,2m acquisition will further increase SA Corporate's retail portfolio, which is due to be boosted through the imminent acquisition of all the SA Retail linked units in issue.

Roger Perkin, managing director of SA Corporate, says the acquisition of the 6 052sq m centre will be funded through an issue of new SA Corporate units.

"The acquisition of the Cullinan Jewel centre will increase our exposure to areas where we have not previously been invested. It will be at a projected initial yield of 9,2% and will enhance SA Corporate's projected earnings in the short to medium term. A head lease has been secured with the seller to guarantee that yield in the first 12 months after acquisition."

Perkin says the centre, anchored by a well supported Spar store on a lease to 2016, will be bought from Kerr Developments of Pretoria. SA Retail, which will be consolidated with SA Corporate, previously bought Willow Way Shopping Centre, in Lynwood, Pretoria, last June for R65,5m and Hubyeni Shopping Centre in Elim for R86m from the same vendor.

These acquisitions follow an agreement between Kerr and SA Retail which could now see SA Corporate acquire a number of turnkey retail centre developments, anchored by Spar, with a total investment value of R700m over the next four years.

Perkin says the Cullinan Jewel centre is in the Dikoneng area, one of Gauteng's Blue IQ initiatives aimed at establishing a premier tourist destination.

"Cullinan Jewel is well let, with favourable line shop demand, and in a stable residential community which is expected to continue to provide loyal patronage. The prospects for rental growth over five years are favourable, with a projected annual average of 7%."

For more information contact 083 456 8386.

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