Investec to buy General Electric Midrand property
JSE-listed Investec Property Fund on Friday said it planned to buy the General Electric South Africa’s Midrand property from North Mid Corporate Park for R119.1-million.
Investec Property Fund, a subsidiary of investment bank Investec, would pay R76.8-million in cash and agreed to refurbish the property at a cost of R42.3-million.
“Given the prime location of the property, the quality tenant and the terms of the lease, the property including the refurbishment is being acquired at an attractive yield of 9%, which the directors believe offers good value and will enhance the earnings and growth prospects of the Fund,” the company said in a statement.
The property comprises a lettable area of 11 180 m2, which would be let at a rate of R68.24 m2 as from January 2012.
The refurbishment is expected to be completed by December 2012.
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