Vunani to acquire R102.5m prime office property in Parktown

Vunani Property Investment Fund (VPF) today said that it has entered into an agreement to acquire the rental enterprise Wellington Road‚ located at 30-32 Wellington Road‚ Parktown‚ Johannesburg‚ for R102.5m cash.

Vunani Property Investment Fund (VPF) today said that it has entered into an agreement to acquire the rental enterprise Wellington Road‚ located at 30-32 Wellington Road‚ Parktown‚ Johannesburg‚ for R102.5m cash.

The acquisition would be funded by debt‚ the company said on Thursday.

The property has a gross lettable area of 10‚018 square metres and consists of offices and 334 parking days. The premises are occupied by Transnet‚ with 10‚018 square metres expiring on June 30 2015.

Vunani was listed on the JSE in August 2011. The main purpose of the listing was to provide the group with a platform for acquisitive growth and the transaction would help it to grow the portfolio through the acquisition of high-quality yield-enhancing properties‚ it said.

Following the acquisition‚ Wellington Road would be upgraded and then expected to give an anticipated yield of 10.5%.

The effective date of the transaction was expected to be February 28 2014. The transaction was conditional on Competition Commission approval and transfer of the property‚ the company said.