Johannesburg-listed Tower Property Fund will acquire real estate company HBW Group’s property letting enterprise Sanclare and its asset, the Sunclare Office Block, in Claremont, Cape Town, for R192.8-million in cash.
Tower said in a statement on Friday that the 14 786 m2 acquisition would provide it with a “solid” office building in one of Cape Town’s premier office nodes, where vacancies were currently below 1%.
The acquisition would also be yield-enhancing and would provide the group with a “good quality” source of income.
Tower added that the seller had provided Tower with a rental guarantee indemnifying Tower against any shortfall in actual rental income in respect of the portions of the property that were vacant on the transfer date, as well as for 24 months after the transfer date.
The acquisition remained conditional on competition authority approval.