One more big property acquisition going to take place in the heart of SA - Johannesburg. Vunani Property Investment Fund i.e. VPF today signed an agreement to take over the rental enterprise Wellington Road, located at 30-32 Wellington Road, Parktown, Johannesburg. VPF was listed on JSE in August 2011.
The company said on Thursday that “The acquisition would take place at an on hand amount of R102.5m but would be funded only on the securities basis for a long term.”
Looking at the property area, it would cover a huge area of 10,018 square metres which can be rented or leased and 334 parking days. However the 10,018 square metres area is owned by Transnet, but will expire on June 30,2015.
JSE had listed the group with the intention to provide the group a good floor for their growth and the transaction would help it to grow their portfolio by acquiring quality properties.
Competent transaction is anticipated to take place on February 28, 2014 based on the Competition Commission approval and transfer of the property provisions.
With this transaction the Wellington Road is expected to grow and provide an output of 10.5%.
