Advertise with

Broll achieves R326 million sales for shopping centres
Broll achieves R326 million sales for shopping centres

Broll achieves R326 million sales for shopping centres


SA Commercial Prop News - Jan 24th 2013, 10:02

Eleven properties previously owned by SA Corporate Real Estate Fund were snapped up by Fairvest Property Holdings Ltd for R326 million, revealing a welcome return of investor appetite for shopping centres within lower living standards measure (LSM) areas. 

South African property management company Broll Property Group sold a portfolio of mainly local shopping centres to JSE-listed Fairvest Property Holdings Limited for R326 million.

Situated in KwaZulu-Natal, Gauteng and the Western Cape, the majority of the properties in the portfolio are shopping centres in low-LSM areas.

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%.

SA Corporate Real Estate Fund is an Old Mutual real estate investment trust listed on the JSE Limited, which invests in retail, industrial and office property primarily in the major metropolitan centres of South Africa.

By SA Commercial Prop News

Related News

Health innovation is an opportunity for South African brands across multiple industries
23/09/2019 - 14:22
With government striving to pass legislation to create a National Health Insurance (NHI) scheme to serve all South Africans, the country’s health and wellness market is in flux. Along with the global trends reshaping the sector, this is a recipe for massive change and disruption that could have wide implications for consumer brands in every segment.

The V&A Waterfront’s Victoria Wharf is SA’s greenest shopping centre
19/09/2019 - 09:13
The V&A Waterfront’s far-reaching waste management and recycling practices has earned the property a prestigious Green Buildings Council of SA (GBCSA) 5 Star Green Star Existing Building Performance v1 certification (EBP v1) for the popular Victoria Wharf Shopping Centre – the highest rating for any existing shopping centre in South Africa.

RDI Reit offloads German shopping centre for €91m
18/09/2019 - 10:23
RDI Reit said on Wednesday it is making progress in offloading its German assets after selling its Bahnhof Center in Hamburg for €91m (R1.47bn).

Multi-million rand Rustenburg Mall underway
09/09/2019 - 11:07
Rustenburg shoppers can look forward to a brand new shopping centre – Rustenburg Mall – set to introduce its first phase in April 2021.

Shopping centres need to adopt an integrated holistic and fluid strategy to drive performance - Clur report
05/09/2019 - 10:36
Shifting local and international approaches to lifestyle, health, wellness, environment, work, and community living are increasingly dictating the need for Southern African shopping centres to adopt an integrated holistic and fluid strategy to drive performance.