SA Corporate Real Estate Fund has agreed to buy the Musgrave building in Durban for R65m. The building is owned by Old Mutual Life Assurance Company (OMLACSA)‚ and occupied by PricewaterhouseCoopers (PwC).
The purchase of the property, for cash, will be effective on transfer which is expected to take place during the first quarter of 2013.
"The acquisition is firmly in line with the overall investment strategy of the fund at an initial yield on total cost of 10.43% on the assumption that transfer of the property is registered on March 1 2013‚" the SA Corporate Fund said in a statement.
The property comprises a five story A-Grade office block and is fully let to PwC on a triple net lease escalating at 8% a year compound. The lease expires on June 30 2015.
As SA Corporate and OMLACSA have a common asset manager‚ Old Mutual Property (OMP) and further‚ as OMLACSA is an associate of OMP‚ the acquisition is a "small related party" transaction in terms of the JSE listings requirements.
The acquisition is subject to obtaining the relevant regulatory approvals‚ and a due diligence investigation within 21 business days from date of signature.
I-Net Bridge For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.
We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field. Go to: http://www.inet.co.za
LEGAL DISCLAIMER: This Message Board accepts no liability of legal consequences that arise from the Message Boards (e.g. defamation, slander, or other such crimes). All posted messages are the sole property of their respective authors. The maintainer does retain the right to remove any message posts for whatever reasons. People that post messages to this forum are not to libel/slander nor in any other way depict a company, entity, individual(s), or service in a false light; should they do so, the legal consequences are theirs alone. Bizcommunity.com will disclose authors' IP addresses to authorities if compelled to do so by a court of law.