Resilient Property Income Fund has agreed to acquire Highveld Mall, a retail centre in Witbank that is now under construction, for R270-million, the company said on Tuesday.
The 40 000 square metre centre, which is due for completion in April 2007, will be anchored by branches of retailers Edgars, Woolworths and Pick ‘n Pay.
According to Resilient, the group will own 60% of Highveld Mall at completion. The company acquired the land at a cost of R11,4-million in December, while the development agreement provides Resilient with a guaranteed yield of 10% going forward.
The acquisition would be funded from existing cash resources and additional borrowing facilities, the company added, and would have no significant impact on Resilient’s net asset value per linked unit.
The forecast revenue from the project for the eight months to end-December 2007 amounted to R20-million, while the forecast net profit totaled R2-million. – I-Net Bridge