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Capital Property sells retail properties

31 Aug 2011

Capital Property Fund announced on Tuesday, 30 August 2011, that it had concluded an agreement with Fortress Income Fund and Resilient Property Income Fund, respectively, for the disposal of a portfolio of retail properties.

The purchase consideration payable by Fortress pursuant to the Fortress transaction is R704 million, which will be settled by the issue of 51,014,493 Fortress A linked units and 51,014,493 Fortress B linked units to Capital.

The purchase consideration payable by Resilient is R1.028 billion. Resilient will pay R514 million in cash, while the balance will be through the issue of 16,211,238 Resilient linked units.

"As previously communicated to unitholders, although Capital's portfolio currently includes R3.8 billion of retail centres, retail properties are not part of Capital's strategy and focus and it is the intention to reduce the retail component of the portfolio over time," Capital Property Fund said.

Capital will use the cash proceeds from Resilient to reduce interest-bearing borrowings.

Both transactions are subject to regulatory approvals and the effective date thereof is 1 December 2011.

Source: I-Net Bridge

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