Sycom sells Discovery Building in Sandton for R413 million

JSE-Listed Sycom Property Fund (SYC) said on Thursday it had exchanged contracts on the sale of Discovery Building in Sandton to The Truzen 113 Trust for R413.9 million.

JSE-Listed Sycom Property Fund (SYC) said on Thursday it had exchanged contracts on the sale of Discovery building in Sandton to The Truzen 113 Trust for R413.9 million.

Sycom which posted a 5.8% increase in distribution to 90.6 cents per linked unit for the six months ended March 2013, confimed that the property has a single tenant and occupied by Discovery Health.

In June‚ Discovery indicated that its future needs for office space would be significantly greater than the area currently occupied in the property and its adjoining buildings.

Given the risk of Discovery vacating the property at the end of its current lease in March 2016‚ Sycom entered into discussions with Zenprop regarding the potential redevelopment of the property and its adjoining buildings.

The proceeds of the disposal would be used to fund future developments and acquisitions‚ Sycom said.

In July Hyprop Investments (HYP) reported that it was one step closer acquiring Somerset Mall in the Western Cape for R2.3bn from Sycom Property Fund‚ which would be one of the most significant retail transactions in the South African commercial property market.

Blue-chip retail acquisitions have become a rarity in the sector‚ with property players looking to hold on to their in-demand assets.

Sycom unitholders had approved the transaction‚ which was subject to regulatory approval.