CAPE TOWN - Investec Property Fund has sold its interests in Musina Mall in Musina, Limpopo, and Boitekong Mall, in Rustenburg, North West Province for R727 million.
The disposals were in line with a strategy of recycling capital through disposals, and redeploying it into long term value enhancing assets that provide better risk adjusted returns.
The disposals allow the fund to degear the balance sheet, and provide further funding capital for the Pan European logistics real estate and UK Fund strategies.
The most recent Pan-European pipeline acquisition accounted in December, were two Belgium logistics properties acquired for Euro 70.4 million, and were expected to genera an investment yield of 7.9 percent in Euro and 0.5 percent in rands.
Musina Mall, in which Investec Property Fund has a 66.7 percent interest, and Boiketong Mall, in which the group held a 70 percent stake, equated to a blended exit yield of 8.5 percent, and represented a marginal 3 percent decline in book value. The sales were expected is to be concluded in March.
Investec Property Fund’s share price increased 0.72 percent to R13.99 on the JSE yesterday morning.
Investec Property Fund’s portfolio is made up of direct and indirect investments in South Africa, Australia, the UK and Europe. Direct investments comprise some 99 properties in South Africa valued at R17.3 billion.
Investec Property Fund grew net property income by 1.3 percent in the six months to September 30, 2019, while the final distribution of 70.93 cents per share resulted in year-on-year distribution growth of 3.1 percent.