Accelerate to sell Eden Meander centre in George to Sasol Pension Fund
Diversified JSE-listed real estate investment trust Accelerate Property Fund has accepted an offer from the Sasol Pension Fund to acquire the Eden Meander Shopping Centre, with a gross lettable area of 31 136 m2 and an adjacent 7 094 m2 vacant land parcel.
The centre is located near the residential hub of George in the Western Cape.
The minimum purchase consideration will be about R521-million, calculated on a 7.5% net income capitalisation rate applied to a 12-month net operating income forecast from December 1 this year.
The final purchase price will be determined following the due diligence process.
“In line with our asset recycling strategy, we believe that disposing of Eden Meander at this attractive yield to a credible counterparty will unlock considerable value for shareholders, as it enables us to strengthen our balance sheet,” comments Accelerate joint CEO Abri Schneider.
Proceeds from the disposal will be allocated towards settling debt and are expected to have a positive impact on the group’s financial ratios, including loan-to-value (LTV) and interest cover (ICR).
Since the financial year end, Accelerate has disposed of the Ford Fourways premises and Leaping Frog Shopping Centre, which reduced its LTV by 1.2% and improved the ICR by 0.1 times.
The disposal of Eden Meander will further reduce LTV by 3.0% to 39.6% and result in a further meaningful improvement of the ICR.
During its financial year ended March 31, Accelerate successfully transferred R146-million of assets and concluded sale agreements of additional disposals with an aggregate value of R292-million.
“The decision to sell this asset was not taken lightly; however, the price achieved coupled with the positive impact on Accelerate’s financial metrics all contributed to the board’s decision,” Scheider concludes.
Comments
Research Reports
Latest Multimedia
Latest News
Showroom
Weir is a global leader in mining technology. We recognise that our planet’s future depends on the transition to renewable energy, and that...
VISIT SHOWROOM
FlameBlock is a proudly South African company that engineers, manufactures and supplies fire intumescent and retardant products to the fire...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
