Tower to acquire De Ville Shopping Centre for R226m
Real estate investment trust Tower Property Fund has concluded agreements to buy the De Ville Shopping Centre, in the Western Cape, from capital growth fund Attacq for R266-million.
The acquisition would be made through Tower buying all of the issued shares in and shareholder claims against De Ville for an amount of R202.96-million in terms of a sale agreement, and by Tower’s subscription for 900 authorised but unissued shares in De Ville for an amount of R23-million, in terms of a subscription agreement.
The De Ville Shopping Centre comprised a total gross lettable area of 13 455 m2, including a B-grade office tower above the retail centre and 515 undercover parking bays.
The weighted average rental of the property for the month of April was R133.17/m2.
Tower said in a statement on Monday that the acquisition was in line with its strategy of targeting good-quality, well-located, medium-sized properties in major metropolitan areas.
The sale agreement was still subject to Tower board approval, Tower obtaining approval of a loan from a bank or other financial institution in an amount of not less than R113-million to fund the purchase consideration or the subscription price, regulatory approvals and other conditions precedent.
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