April 2 2024 13:00
Emira Property Fund (JSE: EMI) will sell almost all its wholly owned Cape Town properties in a R1.1bn transaction, which will create liquidity for Emira.
Spear Reit, which invests exclusively in the Western Cape, will take ownership of the 13 properties in the portfolio. The portfolio includes six office properties, five industrial facilities and two specialist retail properties, with the majority of the portfolio value being in office properties.
The selling price has been agreed at a small discount to book value. Emira said it has strong capacity to successfully trade out of assets underscoring astute capital allocation. The deal will be settled in cash.
Geoff Jennett, CEO of Emira Property Fund, said, “The growing demand for investment property in the Western Cape presented an exciting liquidity opportunity for Emira because our regional holdings there are smaller and not something we want to add to at the current pricing levels. We are alive to market opportunities and agile in responding to prospects that further our strategic ambitions.”
The deal carefully considers the consistency of management experience and expertise, and the knowledgeable Emira team directly responsible for managing that portfolio of properties will join Spear’s team.
“We have no doubt that these properties will be in good hands at Spear and our people will find a good home with them. With its specialist Western Cape focus, we are confident that Spear will achieve great value from these assets. This transaction is mutually beneficial for Emira and Spear and we believe it is a win-win for all involved,” said Jennett.
Emira entered this transaction with a R15 billion diversified portfolio that is balanced with a mix of assets across sectors and geographies. Post this deal, Emira’s South African portfolio of commercial and residential assets will reduce from R12.3bn to R11.2bn while its US equity investments with in-country specialist co-investment partner, The Rainier Companies, will remain R2.8bn (USD151.9m) comprising 12 grocery-anchored open-air convenience shopping centres.
Tenants of the Cape assets include Intercare, Clicks, Pepkor, Bidvest, PPS, Brimstone Investments, among others.
Geoff Jennett, Emira Property Fund CEo
247@propertyflash.co.za
