In October 2014 Emira acquired a 60% undivided share in Ben Fleur Boulevard, a neighbourhood shopping centre in Emalahleni (previously Witbank), Mpumalanga, which serves a rapidly growing, upmarket suburb. It benefits from an excellent retail mix, anchored by Checkers and Woolworths, with strong lease covenants from its 79% national retailer base.
The R93.35m acquisition includes the existing centre of 8,573m², as well as a 60% share in two potential future phases, which could eventually see the centre fully developed to in excess of 15,000m².
In November 2014, the newly constructed Woolworths began trading, so successfully that they exercised their option to expand their store as early as May 2015. The second phase includes the expansion of Woolworths at the centre, as well as more fashion retailers being introduced.
"This earnings enhancing transaction, which has a projected blended yield of 9.1%, supports Emira's objective to increase its exposure to quality retail property with higher values. Its strong retailers also improve Emira's tenant profile. Ben Fleur Boulevard is in an exciting growth area, which supports above average income growth in the medium-term," James Templeton, CEO of Emira Property Fund, comments.
Emira is also investing a combined R41.4m in the redevelopment, refurbishment and conversion of two of its existing B-grade office buildings into retail showroom premises. The redeveloped Sandgate Park and CRB House in Kramerville, Sandton - which will now be collectively known as Kramerville Corner - have already started attracting prominent names in the design and décor industry who are not currently represented in the node.
This investment enhances a long-term asset for Emira in a prime location in a sought-after node, at the same time improving the quality of its asset base and boosting its retail exposure. An incremental 991m² of available bulk will be utilised for a brand new two-level showroom for Bakos Brothers who have committed to a five year lease.
Together these two buildings will grow to around 18,500m². Both buildings will receive new shop-fronts, walkways and entrance features in line with the rejuvenation that has become a feature of Kramerville.
The upgrades will significantly increase the buildings' retail and showroom space and reduce office space to 14% of gross lettable area. The Kramerville Corner redevelopment is anticipated to be completed in February 2016.