Vukile Property Fund- a JSE listed real estate investment fund announced on Thursday that it has signed a contract amounting R338m with Synergy Income Fund and will achieve its 34% of linked units. The party holds a varied portfolio of 81 property assets amounting R10.3bn having a market capitalisation of R8.1bn.
The Synergy Income Fund is an internally managed property loan stock company. It has A and B unit structures where A-linked unitholders receive preferential distribution over B-linked unitholders. The retail assets of the Fund includes average sized shopping centres in high growth areas benefitting the middle class families.
The Vulike Fund would buy 52,300,000 Synergy B-linked units i.e. 34% interest in Synergy from the Liberty Property Group.
The company CEO, Mr.Laurence Rapp said that “This deal provides us a good platform to expose ourselves to the retail property sector and the Western Cape region. It will enhance our earnings. Our main aim is to increase the gross turnover of our retail property assets.”
“This agreement will bring effective growth in the market and enhance our portfolio composition objectives. We will be pleased if there are such earning enhancing opportunities including the key objectives of building a high quality portfolio that supports the retail sector market.”
The property acquisition will be done with the flow of around 20.6 million Vukile units into Liberty on December 17, which will then included in the Liberty Property Portfolio.
