Fairvest to buy retail properties for R67mil
PROPERTY company Fairvest announced yesterday it had entered into agreements with consortium Isolenu to acquire various retail properties around SA for R67,4m.
The acquisitions, according to Fairvest, are consistent with its strategy of focusing on acquiring retail assets in non-metropolitan areas and the lower living standards measure sector.
The acquisitions are expected to be completed by December 1.
Fairvest’s investment property portfolio comprises 11 commercial properties and is valued at R102,75m.
The company’s portfolio has a regional split — based on income receivable — of 5,7% in Gauteng, 5,9% in the Free State, 42,3% in KwaZulu-Natal and 46,1% in the Eastern Cape.
Isolenu’s portfolio that Fairvest plans to acquire includes five Pick n Pay centres in Gauteng, namely Vereeniging, Orange Farm, Zamdela, Stretford and Sharpeville; and one at Nyanga in the Western Cape.
Fairvest advised unitholders it was still in negotiation with SA Corporate Real Estate (SA Retail Properties Limited and SA Corporate Real Estate Fund) to purchase various other properties around SA for R328,8m.
The Isolenu acquisition is subject to the fulfilment of various conditions, which include the satisfactory completion of due diligence investigations.
The acquisition is also subject to the approval of the Fairvest board within 10 working days of the investigation.
The approval of the Isolenu board is needed within 20 working days of the signing of the agreements.
