Pretoria - UK property company Folkes Holdings and Attacq Property Fund, owned by R1.5 billion private property investment fund Atterbury Property, have each purchased a 20 percent stake in RAPfund, a private retail property fund, in a deal valued at R400 million.
RAPfund is one of the retail funds of Retail Africa, a prominent developer and operator of retail malls in South Africa.
RAPfund chief executive Jannie Krüger said yesterday that the deal was a strategic move. "Our new partners have been carefully selected. Being leaders in their respective markets, they bring significant skill and expertise to our business and expedite our ongoing growth strategy of acquiring select quality products."
RAPfund's portfolio has a gross value of about R550 million, but it envisages adding eight properties over the next two years; these are now under construction. Krüger said this would increase the gross value of the fund to about R2 billion by the end of 2009.
Properties housed within RAPfund were easily identifiable by their strategic locations, with superior accessibility, visibility and a superb tenant mix, Krüger said. Anchor tenants normally included Pick 'n Pay, Woolworths or both.
Atterbury chief executive Louis van der Watt said the company regarded its investment in RAPfund as integral to its expansion strategy. "RAPfund is a perfect match for us as we seek to invest in focused funds where the management team has already proven its performance skills."
Constantine Folkes, the chairman and chief executive of Folkes Holdings, said the company was committed to South Africa. Its strategy was to inject R300 million of capital into the South African market, primarily the retail sector.
"It is evident that South Africa is a rapidly emerging economy and that there is a strong determination from all quarters to deliver financial stability and growth. We recognise the strengths and expertise of the Retail Africa team," said Folkes.
Krüger said RAPfund was established to create a quality retail property portfolio that exclusively targeted high-income spending, relying on strong urban growth. "The convenience shopping centre fund houses shopping centres of less than 15 000m² that are located in growth nodes in high-net-worth areas."
RAPfund had investments in Featherbrooke Village Shopping Centre in Ruimsig, Steenberg Village Shopping Centre in Cape Town, San Ridge Square in Midrand, Eden Meadows Shopping Centre in Edenvale, Honeydew Village Shopping Centre in Randburg, Kingfisher Corner Shopping Centre on the East Rand, Clearwater Crossing on the West Rand, El Corro in Northcliff, Waterkloof Corner in Brooklyn in Pretoria and The Parks in Saxonwold.
Krüger added that Retail Africa had recently established Wingspan, a second property fund, which housed major centres and selected office parks. Its portfolio included the new 30 000m² Irene Village, as well as 35 000m² Westwood Mall and 17 000m² Clearwater Office Park, which were under construction and were jointly valued at R1.4 billion.