Vunani Property Investment Fund to acquire Wellington Road
JSE-listed Vunani Property Investment Fund (VPIF) has entered into an agreement with Magakabye Property Services to buy rental enterprise Wellington Road, in Parktown, Gauteng, measuring 12 140 m2 collectively, for R102.5-million.
This transaction was a step towards VPIF’s stated intention of growing its portfolio through the acquisition of high-quality, yield-enhancing properties, VPIF said in a statement on Thursday.
The gross leasable area of 10 018 m2, which comprised 100% offices and 334 parking bays, was currently occupied by State-owned company Transnet, whose lease expired on June 30, 2015.
Following the acquisition, which will be funded by debt, Wellington Road would be upgraded and “then give an anticipated yield of 10.5%”, added VPIF. The fund forecast that the investment property income for the four months ending June 30, 2014, would be about R4.9-million and about R15.8-million for the 12 months ending June 30, 2015.
VPIF explained that the transaction was conditional upon Competition Commission approval and the transfer of the property. The effective date of the transaction, which was expected to be February 28, 2014, would be the date on which the property’s transfer of ownership was registered.
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