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Tower to acquire De Ville Shopping Centre for R226m

17th March 2014

By: Leandi Kolver

Creamer Media Deputy Editor

  

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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.

Edited by Tracy Klückow
Creamer Media Contributing Editor

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