PROPERTY: Synergy Concludes Acquisitions
Recent Western Cape Business News
In a R530-million deal, the recently listed Cape Town-based property loan stock company Synergy Income Fund has increased the value of its retail portfolio by 50% with the purchase of two shopping centres from the unlisted Old Mutual Ideas Fund and associated shareholders.
The acquisition of Gugulethu Square (25 300m2 GLA) in the Western Cape and Setsing Crescent (21 500m2 GLA) in the Free State further strengthen Synergy’s focus on the growth opportunities presented in South Africa’s emerging retail market.
‘We are delighted to be able to announce the conclusion of this deal to acquire two high quality retail assets and through these acquisitions deliver further growth to our investors,’ says Synergy chief executive officer William Brooks. ‘We identified these shopping centres for potential acquisition some time ago and when the opportunity arose to make an offer we were ready. Both centres are well located in strong demographic nodes and tenanted to leading national retail groups. We are confident that these investments will deliver sustainable growth to our unit holders.’
The transaction is subject to approval by the seller’s Board of Directors and shareholders, Synergy’s unit holders and the Competition Commission. Funding will be through a combination of debt, and the issue and placement of linked units.
Situated in the heart of Gugulethu outside Cape Town, Gugulethu Square is a newly-built 25 300m2 gross lettable area shopping centre designed by Bentel Architects and developed by the Old Mutual Ideas Fund in 2009. Gugulethu Square is the only formal shopping centre within the greater Gugulethu catchment area and is dual anchored by both a SuperSPAR and a Shoprite supermarket. It is tenanted by all the major national retail groups and has enjoyed strong growth in trading densities since opening.
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