Growthpoint buys R418m stake to own Alberton City
Category Property Fund News
Liberty Group Properties on Wednesday confirmed the sale of Liberty Group Limited's interest in Alberton City Shopping Centre to Growthpoint Properties Limited.
Growthpoint Properties which currently owns a 36% stake in Alberton City, purchased the remaining undivided share of 64% from Liberty Group Limited for R418 million.
Alberton City Shopping Centre, situated in the heart of Alberton CBD, spans approximately 48,000 square meters and includes anchor tenants such as Game, Checkers, Clicks, Edgars and other national and independent tenants.
The deal will be effective upon approval by the Competition Commission, as well as the fulfilment of contractual obligations by both parties.
Samuel Ogbu, chief executive officer of Liberty Properties, said the decision to sell Alberton City had come about through its drive to ensure that it continued to deliver inflation-beating returns to its policyholders as it had done for the last 40 years.
"In order to continue this record, and an unbroken 28 years of double digit returns, we continually review the composition of the Liberty investment property portfolio to make sure that we are invested in the right sectors, locations and a mix of old and new assets.
"The sale of Liberty's interest in Alberton City will allow us to re-invest these funds in other property opportunities," he commented.
Ogbu noted that Liberty Properties had been involved with the centre for over two decades and during this time the centre underwent a number of improvements, including extensions and refurbishments.
Growthpoint Properties' retail division director Stephan le Roux said that acquiring Alberton City was in line with its strategy.
Growthpoint Properties is the largest South African listed property company and is included in the JSE ALSI Top 40 Companies Index, with a market capitalisation of R31.6 billion at December 31 - its property assets exceed R50.0 billion.
And its quality portfolio of 412 directly-owned properties in SA is valued at R33.6 billion and, through its 64.5% held subsidiary GOZ it has a stake in 40 properties in Australia which are valued at R11.7 billion.
The company also has a 50% interest in the V&A Waterfront, valued at R9.7 billion.
"It is our objective to hold and grow a portfolio of quality shopping centres which perform favourably. Having previously been co-owners of Alberton City, we're well-acquainted with the asset and are confident in its ability to deliver sustainable growth in rental income and provide longer term capital growth within the Growthpoint retail property portfolio," Le Roux said.
He added that Alberton City was a good fit for Growthpoint's retail property portfolio as it increased its investment in retail in the Johannesburg area.
Growthpoint owns over 50 shopping centres across SA, valued in excess of R12 billion, in addition to its 50% stake in the V&A Waterfront.
Author: INet Bridge
