VENTURES AFRICA – SA Corporate Real Estate Fund, a diversified real estate investment fund, invested in retail, industrial and office property, disclosed yesterday that Capital Property Fund had expressed interest in acquiring all its assets for an undisclosed sum.
The Real Estate Fund, primarily focused in the major metropolitan centres of South Africa, confirmed that a deal is in place. According to reports, the deal is said to be sizeable one in the listed property sector.
Reports indicate that Capital has made proposals regarding the pricing of the envisaged acquisition and the basis on which the price would be settled by it, although details have not been revealed as negotiations were on-going. However, it plans to pay in cash and in units.
Only last week, Capital said discussions between the parties had been scheduled to address these and other details of the deal. While yesterday, SA Corporate confirmed that an expression of interest letter had been received from Capital to acquire its assets. However, no exclusivity had been granted nor had any agreement been reached at this stage, added SA.
According to its Alternative Real Estate fund manager Maurice Shapiro, little information had been provided.
“So no one would not want to speculate. We have seen many mergers and new listings coming to the listed property sector over the last year. Each is different. Until a firm offer is made it would be a bit premature for investors to know if this is good for the sector,” he added.
Shapiro also highlighted SA Corporate’s great industrial property portfolio, but revealed worries over its retail portfolio.
Capital boasted a R17.4 billion rand ($2.2 billion) portfolio last year.