PROPERTY: Ingenuity Moves Into South Cape
Recent Western Cape Business News
LOCAL property group Ingenuity – which has initially focused on Cape Town properties – has made a bold move into the Southern Cape.
This is the first deal clinched by Ingenuity since strategic investor, Trematon Capital Investments, sold out their position to Jacana Assets and US-based investor Louis Frenkel.
The company – now chaired by former Paramount Property boss Rodney Squire-Howe – seems keen to diversify its portfolio away from its Cape Town core.
Ingenuity will pay R40.5 million to The Lot 491 Trust and The Hipo Trust to buy the Loerie Centre in George.
Ingenuity does not provide a plethora of comment on the deal, but an official SENS notice states that the Loerie Centre will be earnings enhancing and represents an attractive investment.
Judging from recent advertising the Loerie Centre has been up for sale for a while, and it appears Ingenuity stepped in after a previous deal lapsed.
From what CBN can ascertain the original asking price on the Loerie Centre – which houses a number of well known retail chains like Truworths, American Swiss, Woolworths and Foschini - was R45 million.
Whether the Loerie Centre is the first thrust in a strategy to geographically diversify Ingenuity’s portfolio remains to be seen. Ingenuity’s focus has initially been the Western Cape – which does include George.
In May last year the company actually disposed of two of its Cape Town CBD properties - 22 Long Street and 33 Waterkant Street – for over R100 million. The sale proceeds were applied to reduce borrowings and provide capacity to apply funds to new investment opportunities to develop existing land and value-add opportunities.
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