Real estate investment trust Gemgrow has acquired an effective economic interest of 95% in Moolgem, for about R628-million, yielding 11.48%.
The Moolgem portfolio comprises 85% retail, and has 26 properties in the Limpopo region, including retail centres Jane Furse Crossing and Game Centre.
The acquisition will be effective November 1, following fulfilment of certain conditions.
Additionally, Gemgrow acquired another portfolio of ten retail properties to the value of R99-million at a yield of 12.46%.
The combined transactions will increase Gemgrow’s investment in property assets by R728-million.
“Since the inception of Gemgrow, we have embarked on a process of growing and diversifying the portfolio, which includes an acquisition of R550-million of outlying retail assets, strategic disposals of noncore assets and the current R728-million purchase of predominantly outlying retail properties.
“In addition, the dual expertise of Gemgrow and the Moolman Group, through the Moolgem vehicle, will allow us to leverage off future opportunities and ensure we extract further value from our retail assets,” said Gemgrow COO Alon Kirkel.