Cape Town - Fairvest Property Holdings announced on Tuesday that it had agreed to buy three retail centres in the Eastern Cape from Born Free Investments 385 for a total of R133 million.
The real estate investment trust, with a market capitalisation of almost R1.1 billion, announced earlier on Tuesday that it had lifted net asset value by 16 percent to 184.4 cents per share in the year to June.
In the same period, revenue grew 26.2 percent to R187.9 million as a result of income growth in its historic portfolio as well as acquisitions made during the past two years.
Its annual results statement also noted that it had increased its annualised return to shareholders by 41.6 percent in a year when vacancies had been reduced to 4.4 percent of the total lettable area.
The purchase of the centres in the Eastern Cape, which is subject to conditions, is consistent with Fairvest’s growth strategy, which focuses on acquiring retail assets in non-metropolitan areas with a weighting on lower living standard measurement sectors.
The company said the deal, which is expected to close on or about December 1, would be funded with debt and/or equity.
ANA