Trematon concludes R614m acquisition deal with Redefine

Trematon Capital Investments CE, Arnold Shapiro says the transaction marks a significant step-change to Trematon’s growth trajectory and fits squarely into the ARIA Property Group strategy of acquiring key assets

JSE listed Trematon Capital Investments, on Monday advised that it had concluded an agreement with Redefine Properties to acquire seven office, retail, industrial and mixed use assets‚ for R614 million.

The acquisition, was made through Trematon's unlisted subsidiary company, ARIA Property Group.

The portfolio, which include blue chip national operators such as Standard Bank, Bidvest, Engen, Foschini, Clicks, Virgin Active, Shoprite, Truworths, Capitec, KFC, Beares and Ackermans, will expand ARIA’s commercial property portfolio to 21 assets.

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“This transaction marks a significant step-change to group’s growth trajectory and fits squarely into the ARIA strategy of acquiring key assets that are undervalued and allow for significant value unlock by our team. We see significant upside potential for income and capital growth across the portfolio,” said Trematon Chief Executive, Arnold Shapiro.

Since the acquisition will be debt funded, the effect on income will initially be dilutive but management expects that rental income will increasingly contribute to the Company’s profit as the portfolio is redeveloped and retenanted.

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Apart from its commercial real estate interests held through ARIA, Trematon is also invested in residential real estate through the wholly-owned Resi Investment Group (Resi), as well as the gaming and leisure sector through its wholly-owned interest in Club Mykonos Resort in Langebaan, and its 30% interest in the Mykonos Casino.

The total Resi portfolio, including new builds amounts over 600 units.

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ARIA, under the management of Ilan Kaplan and Justin Roome, redeveloped Northgate Island from a failed and vacant shopping mall into arguably one of Cape Town’s landmark sites set on the corner of the N1 Highway and Koeberg Road in Milnerton, in the Northern Suburbs of Cape Town.

Trematon Capital Investments is an investment group. The portfolio comprises investments, subsidiaries, associates and joint ventures engaged in a variety of industries.

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Most of the investments are based in the Western Cape and are related in some way to property or leisure. The Group also engages in investment and trading in listed and unlisted shares which are not specific to any industry.