JSE-listed Delta Property Fund on Tuesday said it planned to acquire a range of properties in Durban, KwaZulu-Natal, from Old Mutual Life Assurance Company for R487.2-million.
Delta agreed to buy OMC Durban, which included the Old Mutual Centre, Westguard House, 300 Smith street and a 400-bay car park on the former Gardiner House/Mutual building sites, for R291-million and The Marine and The Marine parking for R196.2-million.
The purchase consideration excluded ancillary costs of R3.35-million.
Delta, which had identified vacancies worth R10-million at OMC Durban and R18.6-million at The Marine, noted that OMC Durban was underpinned by a gross rental guarantee of R10-million for two years with regard to the mothballed premises at 300 Smith street.
The acquisitions, which were in line with Delta’s strategy, presented “attractive investment” opportunities to Delta linked unitholders, as the properties were well established and occupied by low-risk tenants.
The acquisitions, which were expected to be completed during September remained subject to conditions such as regulatory and competition authority approvals, as well as the confirmation of adequate funding and written approval from the Delta board.