Johannesburg-listed Freedom Property Fund has inked a deal that will see it receiving R88-million from banking group Nedbank, allowing it to advance its strategy to expand the Steelpoort Industrial facility, in Limpopo, and to further develop the nearby Tweefontein Residential zone.
This would bring the gearing within the group to R120-million.
The group said in a statement on Wednesday that Steelpoort Industrial, which was effectively 100%-owned by subsidiary Kadoma Investments, was ideally placed to offer facilities to companies providing mining and related services.
In line with Freedom’s strategy to further develop Steelpoort Industrial, as set out in its prelisting statement in June, the company would develop a further seven industrial units to meet market demand, providing a further 8 050 m2 of gross lettable area (GLA).
The new expansion at Steelpoort Industrial would provide a total GLA in excess of 27 000 m2, excluding undeveloped stands, which were let to certain tenants.
Further industrial units would be developed as demand in the area dictated and new tenants were engaged.
“We expect that the first of the new units will be completed and delivered by the end of October, with the final units expected to be completed by the end of March next year.
“The upgrading and expansion of the existing facilities is, meanwhile, expected to be completed by the end of November,” the company outlined.